Enhancing International Cooperation Towards a Durable Solution to the External Debt Problem of Developing Countries

A/RES/53/175No PDF available

Who created this mandate?

A Resolution of the General Assembly, under agenda item 91dExternal debt crisis and development, published in 1999.

What other versions does this mandate have?

7 versions · 1996–2003

This is an older version — the most recent is A/RES/57/240

2003A/RES/57/240Enhancing international cooperation towards a durable solution to the external debt problem of developing countriesLatestCompare with previous version
2001A/RES/55/184Enhancing international cooperation towards a durable solution to the external debt problem of developing countriesCompare with previous version
2000A/RES/54/202Enhancing international cooperation towards a durable solution to the external debt problem of developing countriesCompare with previous version
1999A/RES/53/175Enhancing international cooperation towards a durable solution to the external debt problem of developing countriesCompare with previous version
1998A/RES/52/185Enhancing international cooperation towards a durable solution to the external debt problem of developing countriesCompare with previous version

Versions are identified automatically by matching titles within the same organ (~97% accuracy on a manual audit).

What subjects does this mandate have?

15 topics

Bretton Woods Institutions Capital Movements Debt Conversions Debt Relief Debt Servicing External Debt Financial Assistance Financial Crisis Financial Flows Foreign Investments International Financial Institutions Least Developed Countries Multilateral Trade Negotiations Payments Arrangements Resources Mobilization

What does this mandate say?

37 operative paragraphs

Takes note of the report of the Secretary-General on the debt situation of the developing countries as of mid-1998;

Recognizes that effective, equitable, development-oriented and durable solutions to the external debt and debt-servicing problems of developing countries can contribute substantially to the strengthening of the global economy and to the efforts of developing countries to achieve sustained economic growth and sustainable development, in accordance with the relevant General Assembly resolutions and recent United Nations conferences;

Notes that further progress, including swift implementation of innovative approaches and concrete measures, is essential for contributing to effective, equitable, development-oriented and durable solutions to the external debt and debt-servicing problems of developing countries, particularly the poorest and heavily indebted countries;

Also notes, while recognizing the benefits of liberalization of international capital flows, the adverse impact of the volatility of short-term capital flows on exchange rates, interest rates and the debt situation of developing countries, and stresses the need for coherence in implementing policies as well as capital accounts liberalization in an orderly, gradual and well-sequenced manner to keep pace with the strengthening of the ability of countries to sustain its consequences, in order to mitigate the adverse impact of such volatility;

Urges the international community to consider voluntary measures and mechanisms, involving private creditors and taking into account existing frameworks, that would allow debtor countries breathing space through, inter alia, mutually agreed temporary suspension of payments while maintaining their access to interim financing, and, in this regard, welcomes the willingness of the International Monetary Fund to consider providing financing to members in arrears on their debt payments to some private creditors;

Stresses the urgent need to endow the International Monetary Fund with adequate resources to provide emergency financing to countries affected by financial crises as a result, inter alia, of the high volatilities of international capital flows and that continue to pursue a programme of economic stabilization and reform;

Also stresses the need for the Bretton Woods institutions to consider fully, when providing emergency financing, the special economic situations of indebted developing countries affected by natural disasters;

Welcomes the decisions announced by various creditor countries to cancel, partially or totally, the official bilateral debt of the countries of Central America that were most adversely hit by hurricane Mitch, as well as the decisions by donor countries to help reduce debt owed to multilateral institutions, while recognizing the need to ensure that adequate resources are still directed towards relief and rehabilitation efforts, also welcomes the proposals to discuss at the Paris Club meeting, to be held on 7 December 1998, further debt relief for the concerned countries, and calls upon the international financial institutions to help those countries in their reconstruction efforts, inter alia, by lessening the debt-service burden and considering appropriate additional measures and undertaking the early consideration of Honduras and Nicaragua for debt relief under the Heavily Indebted Poor Countries Debt Initiative;

Stresses the importance for developing countries of continuing their efforts to promote a favourable environment for attracting foreign investment, thereby promoting economic growth and sustainable development, so as to favour their exit from debt and debt-servicing problems, and also stresses the need for the international community to promote a conducive external environment through, inter alia, improved market access, stabilization of exchange rates, effective stewardship of international interest rates, increased resource flows, access to international financial markets, flow of financial resources and improved access to technology for the developing countries;

Also stresses that the evolving debt strategy must be accompanied by a favourable and supportive international economic environment, including the full implementation of the results of the Uruguay Round of multilateral trade negotiations, and the Marrakesh ministerial decisions in favour of the least developed countries and the net food-importing developing countries;

Further stresses the need for existing facilities to provide debt-relief measures through various debt conversion programmes, where possible, such as debt-equity swaps, debt-for-nature swaps, debt-for-child development swaps and other debt-for-development swaps, to be widely implemented so that the countries concerned may be assisted in their development efforts, as well as to support measures in favour of the most vulnerable segments of the societies of those countries and to develop techniques of debt conversion applied to social development programmes and projects, in conformity with the priorities of the World Summit for Social Development, held at Copenhagen in March 1995;

Recognizes the need for attaching higher priority to social aspects in the Heavily Indebted Poor Countries Debt Initiative;

Welcomes the progress made in the implementation of the Heavily Indebted Poor Countries Debt Initiative and the extension by the Executive Board of the International Monetary Fund of the original two-year period for countries to begin qualifying for assistance until the end of the year 2000, and stresses that the Initiative offers an important opportunity for the heavily indebted poor countries to reach a sustainable external debt position;

Calls for the speedy and determined extension of the Heavily Indebted Poor Countries Debt Initiative to more countries, and encourages all eligible countries to take policy measures needed to embark on the process as soon as possible so that all can be in process by the year 2000;

Stresses the need for the International Monetary Fund and the World Bank to address expeditiously the special needs of poor post-conflict countries in close cooperation with all relevant parts of the United Nations system, and, in this context, welcomes the decision of the Executive Board of the International Monetary Fund to add a degree of flexibility in its evaluation of track records of policy performance for countries receiving post-conflict assistance;

Also stresses the urgent need for effective mobilization of additional financial resources for the Heavily Indebted Poor Countries Debt Initiative from both bilateral and multilateral creditors without affecting the support required for other development activities of developing countries, and, in this regard, expresses its appreciation for contributions made by some bilateral donors to the Heavily Indebted Poor Countries Trust Fund of the World Bank and the Enhanced Structural Adjustment Facility/Heavily Indebted Poor Countries Trust Fund of the International Monetary Fund, urges other bilateral donors and invites other international financial institutions that have not yet finalized mechanisms for participation in the Initiative to do so as soon as possible, and calls upon bilateral and multilateral donors to contribute to the Heavily Indebted Poor Countries Trust Fund to help the African Development Bank meet its share of Initiative costs;

Calls upon the industrialized countries that have not yet contributed to the Enhanced Structural Adjustment Facility/Heavily Indebted Poor Countries Trust Fund to come forward immediately with their contributions;

Stresses the importance of implementing the Heavily Indebted Poor Countries Debt Initiative flexibly, including shortening the interval between the decision and completion points, taking due account of the policy performance of the countries concerned, in a transparent manner and with the full involvement of the debtor countries;

Also stresses the importance of increased flexibility with regard to Heavily Indebted Poor Countries Debt Initiative eligibility criteria, including continuously evaluating and actively monitoring the implications of the existing terms of the eligibility criteria so as to ensure sufficient coverage of heavily indebted poor countries, increased flexibility being, in this context, particularly important for known borderline cases and countries in post-conflict situations, in respect of, inter alia, avoiding delays in the establishment of a track record of economic performance caused by temporary setbacks due to external shocks, in order to help them to exit from the rescheduling process and from unsustainable debt burdens;

Underlines the importance of the transparency and involvement of debtor countries in any review and analysis that is conducted during the adjustment period;

Welcomes the implementation since 1994 by the Paris Club of the Naples terms, as well as the decision to go beyond the Naples terms to provide debt reduction for eligible countries, in particular the poorest and most heavily indebted countries, and invites all other bilateral, multilateral and commercial creditors to make an appropriate and consistent contribution to the common objective of debt sustainability;

Encourages the international creditor community to consider appropriate measures in cases with a very high level of debt overhang, including, where appropriate, debt conversion measures for the low income countries in Africa, in particular the poorest among them, in order to make an appropriate and consistent contribution to the common objective of debt sustainability;

Welcomes the decision of the Boards of the International Monetary Fund and the World Bank that the comprehensive review of the Heavily Indebted Poor Countries Debt Initiative should be undertaken as early as 1999, encourages the review’s inclusion of the consideration of debt sustainability criteria, as well as a comprehensive study of the impact of traditional debt-relief efforts and its examination of the relationship between debt relief and poverty reduction within the recipient country, and recognizes that the comprehensive review should consider the inputs of other relevant international organizations;

Invites creditor countries, private banks and multilateral financial institutions, within their prerogatives, to continue the initiatives and efforts to address both the commercial debt problems of the least developed countries and the requests for continued mobilization of resources, including through the Debt-reduction Facility of the International Development Association, in order to help least developed countries reduce their commercial debt;

Recognizes the efforts of indebted developing countries in regard to fulfilling their commitments on debt servicing despite the high social cost incurred, and, in this regard, encourages private creditors and, in particular, commercial banks to continue their initiatives and efforts to address the commercial debt problems of middle-income developing countries, in particular those affected by the financial crisis;

Stresses the urgent need to continue to provide social safety nets to vulnerable groups most adversely affected by the implementation of economic reform programmes in debtor countries, in particular low-income groups;

Encourages debtors and creditors to consider ways to ensure that future loans are used in such a way that they avoid having a negative impact on debt sustainability;

Notes with concern the continuing burden of debt and debt-service obligations of middle-income developing countries, including in particular those in Africa, and encourages creditors, including multilateral financial institutions, commercial banks and bilateral creditors, to continue to support those countries in addressing these obligations effectively;

Expresses strong support for the continuation of Enhanced Structural Adjustment Facility operations, and, in this regard, emphasizes the urgency of securing the Facility’s funding and sustenance;

Stresses the need to finalize negotiations as soon as possible for an adequate twelfth replenishment of the International Development Association to a level commensurate with the needs of concessional funding by the poorest developing countries;

Reaffirms the Mid-term Global Review of Progress towards the Implementation of the Programme of Action for the Least Developed Countries for the 1990s, in particular the appropriate actions in favour of those countries concerning their official bilateral, commercial and multilateral debt;

Stresses the need for new financial flows to debtor developing countries from all sources, in addition to debt-relief measures that include debt and debt-service reduction, and urges creditor countries and multilateral financial institutions to continue to extend concessional financial assistance, particularly to the least developed countries, in order to support the implementation of economic reforms and stabilization and structural adjustment programmes by the developing countries that will enable them to extricate themselves from the debt overhang and attract new investment and to assist them in achieving sustained economic growth and sustainable development, in accordance with the relevant General Assembly resolutions and recent United Nations conferences, and the eradication of poverty;

Also stresses the importance of providing adequate resources for debt relief in the light of the adverse effects of the current international financial crisis on the mobilization of both domestic and external resources for the development of the least developed countries and Africa, and welcomes unilateral debt relief measures from creditor countries on top of the multilaterally agreed debt relief under the Heavily Indebted Poor Countries Debt Initiative, bearing in mind that such unilateral actions strengthen the impact of the Initiative as a credible exit solution;

Further stresses the need to strengthen the institutional capacity of developing countries in debt management, and calls upon the international community to support their efforts towards that end;

Calls upon the international community, including the United Nations system, and invites the Bretton Woods institutions, as well as the private sector, to take appropriate measures and actions for the implementation of the commitments, agreements and decisions of the major United Nations conferences and summits organized since the beginning of the 1990s on development related to the question of the external debt problem of developing countries;

Notes the various proposals contained in the Trade and Development Report, 1998, concerning the issue of the external debt of African countries, and requests the Secretary-General to report pertinent developments relating thereto to the General Assembly at its fifty-fourth session;

Requests the Secretary-General to report to the General Assembly at its fifty-fourth session on the implementation of the present resolution.

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