Jan/110
Debt Forgiveness
Debt forgiveness can either be partial or total. Forgiving a debt can also be termed as debt relief. Debt relief has at times been a source of controversy with some people opposed to it. Some people have termed it as a blank cheque to governments. The main concern has always been that the savings will never reach the poor in countries where governments are corrupt. The opponents also argue that countries that have been given the relief normally take advantage and go ahead to contract other debts with the hope that the same debts will be forgiven.
Corrupt officials in various governments use debt forgiveness to amass wealth for themselves as well invest in rich countries denying the common man, the trickle-down effect. According to the proponents, the money would rather be spent on aid projects in the various countries. Others also detest the conditions that come with the relief.
Heavily Indebted Poor Countries (HIPC) program was set up to provide relief to the poorest countries while at the same time trying to ensure that the money is spent on poverty reduction in these very countries.
HIPC initiative provides debt relief to poor countries under conditions similar to those attached to IMF and World Bank loans. Some of the conditions include structural adjustments reforms. The reforms can involve the privatization of public utilities for example water and electricity. For a country to qualify for an irrevocable HIPC debt forgiveness, it must maintain economic stability as well as satisfactorily implement a Poverty Reduction Strategy.
May/090
After the housing bubble, the bubble of the loan?
Loop today indicates that the IMF (International Monetary Fund) has highlighted the growing pressure on consumer credit.
It is estimated that in Europe will be burned 7% of 1730 billion Euros in consumer credit, while the U.S. will go’ lost 14% of 1914 billion dollars total.
The matter was taken into consideration by the Financial Times that focuses particularly on the United Kingdom.
In this country the consumer credit has passed the unemployment problems of prediction going to banks will deliver the money.
Also in the country of “Tea” Unemployment is rising and not expected to decrease, as the delinquencies of these years.
Concern about this “credit bubble” seems to cover all of Europe, but especially England.
To hold our “beautiful country”, do not believe that consumer credit is a concern and pervasive as in other nations.
Naturally, however, is a procedure in which the authorities must keep your eye focused and make sure it never exceeds the values from which he cannot go back.