ABSTRACT

The Committee presented its first report on the implications of the international debt crisis to the 61st Conference held in Paris in 1984, which requested the Committee to report again with a view to providing an overview of relevant legal, monetary and procedural considerations, as well as possible recommendations. A multiyear agreement provides the debtor country a respite, during the consolidation period, to pursue economic readjustment measures and an opportunity to bring external debt amortization requirements under control. In a number of recent bank debt multiyear agreements, interest rate spreads were reduced from the high levels that initially prevailed. Different categories of liabilities have to be Identified, such as debt to intergovernmental financial institutions, to bondholders, and trade related and non-trade related obligations. In order to cover private foreign exchange liabilities, governmental authorities may undertake to provide foreign exchange to service restructured private sector foreign debts meeting certain terms.