United Nations

A/RES/50/92


General Assembly

Distr. GENERAL  

2 February 1996

ORIGINAL:
ENGLISH


Fiftieth session
Agenda item 94


               RESOLUTION ADOPTED BY THE GENERAL ASSEMBLY

           [on the report of the Second Committee (A/50/616)]


         50/92.    Enhancing international cooperation towards a
                   durable solution to the external debt problem of
                   developing countries


     The General Assembly,

     Recalling its resolutions 41/202 of 8 December 1986, 42/198 of 11
December 1987, 43/198 of 20 December 1988, 44/205 of 22 December 1989,
45/214 of 21 December 1990, 46/148 and 46/151 of 18 December 1991 and
47/198 of 22 December 1992, and reaffirming its resolutions 48/182 of
21 December 1993 and 49/94 of 19 December 1994,

     Reaffirming its resolutions 48/165 of 21 December 1993 on renewal
of the dialogue on strengthening international economic cooperation
for development through partnership and 48/166 of 21 December 1993 on
an agenda for development,

     Noting the improvement in the debt situation of a number of
developing countries since the second half of the 1980s and the
contribution that the evolving debt strategy has made to this
improvement,

     Noting with appreciation the debt-relief measures undertaken by
creditor countries both within the framework of the Paris Club and
through their cancellation and equivalent relief of bilateral official
debt, and welcoming the even more favourable terms of the debt-relief
measures recently envisaged by the Paris Club, namely the Naples terms
of December 1994, for the poorest and heavily indebted countries, to
help them exit from the rescheduling process, thus contributing to the
prospects of those countries for resuming growth and development,

     Reaffirming the urgent need for effective, equitable,
development-oriented and durable solutions to the external debt and
debt-servicing problems of developing countries, and to help them exit
from the rescheduling process,

    Emphasizing the importance for debtor countries of continuing to
pursue and intensify their efforts with respect to economic reforms,
stabilization and structural adjustment programmes, in order to raise
savings and investments, reduce inflation and improve economic
efficiency, taking into account the need to address the social aspects
of development, including the eradication of poverty, and their
individual characteristics, as well as the vulnerability of the poorer
strata of their populations,

    Stressing the urgent need for further assisting developing
countries, in particular the poorest and heavily indebted countries,
especially in Africa, in their efforts to improve their debt situation
in view of their continued very high level of total debt stock and
servicing burdens,

     Noting the urgent need for full, constructive and expeditious
implementation of various debt-relief measures undertaken by creditor
countries both within the framework of the Paris Club and through
their cancellations and equivalent relief of bilateral official debt,

     Noting also that, owing to uneven developments within the context
of the evolving international debt strategy, further progress,
including new and concrete measures and innovative approaches, is
essential as regards 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,

     Noting with concern the continuing debt and debt-servicing
problems of indebted developing countries as constituting an element
adversely affecting their development efforts and economic growth, and
stressing the importance of alleviating the onerous debt and debt-
service burdens connected with various types of debt of many
developing countries, on the basis of an effective, equitable,
development-oriented and durable approach and, where appropriate,
addressing the full stock of debt of the poorest and most indebted
developing countries as a matter of priority,

     Noting that multilateral lending operations are excluded from
debt restructuring and, in this regard, emphasizing the need for the
consideration of comprehensive approaches to assist low-income
countries with substantial multilateral debt problems through the
flexible implementation of existing instruments and new mechanisms
where necessary,

     Expressing its concern that, in a number of developing countries
that are making continuous and strenuous economic reform efforts, the
burden of debt and debt service continues to constitute a major
obstacle to the revitalization of the economic growth and development
of those countries, in particular the least developed among them,

     Noting that those developing countries that have continued, at
great cost to themselves, to meet their international debt and
debt-service obligations in a timely fashion have done so despite
serious external and domestic financial constraints,

     Expressing its concern that debt-relief measures taken so far
have not yet fully provided effective, equitable, development-oriented
and durable solutions to the outstanding debt and debt-servicing
problems of a large number of developing countries, in particular the
poorest and heavily indebted countries,

     Reaffirming the results, as agreed, of all major United Nations
conferences and summits held since the beginning of the 1990s on
development, relating to effective, equitable, development-oriented
and durable solutions to the external debt and debt-servicing problems
of developing countries, as well as the consideration of appropriate
measures relating to the mobilization of substantial, new and
additional resources to enable developing countries to achieve
sustained economic growth and sustainable development,

     Noting, while addressing the external debt and debt-servicing
problems of developing countries, the situation in some creditor
countries with economies in transition,

     Stressing the need for continuing global economic growth and the
necessity for a continuing supportive international economic
environment with regard to, inter alia, terms of trade, commodity
prices, improved market access, trade practices, access to technology,
exchange rates and international interest rates, and noting the
continued need for resources for sustained economic growth and
sustainable development of the developing countries,

     Taking note of the results of the Eleventh Conference of Heads of
State or Government of the Non-Aligned Countries, held at Cartagena de
Indias, Colombia, from 18 to 20 October 1995, in particular, chapter
III, entitled "Economic issues", of the Final Document of the
Conference, 1/

     Taking note also of the communique' of the Summit of the seven
major industrialized countries, 2/ held at Halifax, Canada, from
15 to 17 June 1995,

     Taking note further of the communique' of the Interim Committee
of the Board of Governors of the International Monetary Fund, held at
Washington, D.C., on 8 October 1995,

     Taking note of the Ministerial Declaration of the Group of 77 3/ 
adopted at the nineteenth annual meeting of Ministers for
Foreign Affairs of the Group of 77 and China, held in New York on 29
September 1995,

     1.   Takes note of the report of the Secretary-General on the
developing country debt situation as of mid-1995;  4/

     2.   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;

     3.   Also recognizes that the evolving international debt
strategy has to be supplemented by appropriate external financial
flows to indebted developing countries;

     4.   Emphasizes 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, and stresses the need for the international
community to promote a conducive external economic environment
through, inter alia, improved market access, stabilization of exchange
rates, effective stewardship of international interest rates and
increased resource flows, as well as improved access to technology for
the developing countries;

     5.   Stresses the need for finding effective, equitable,
development-oriented and durable solutions to the continuing debt and
debt-servicing problems of the poorest and most indebted developing
countries and the importance of a full, constructive and expeditious
implementation of the Naples terms, agreed upon in the Paris Club in
December 1994, for such countries, with a view to helping them exit
from the rescheduling process on the basis of sound economic policies
in those countries, thus contributing to the promotion of their
prospects for resuming growth and development;

     6.   Recognizes the efforts of indebted developing countries in
fulfilling their commitments on debt servicing despite the incurring
of a high social cost 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;

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

     8.   Notes the high proportion of multilateral debt of a number
of developing countries and invites international financial
institutions to examine proposals to tackle the problems of those
countries with regard to multilateral debt, taking into account the
specific situation of each country, while preserving the preferred
creditor status of the multilateral financial institutions, in order
to ensure that they can continue to provide concessional financing to
those developing countries to assist their development;

     9.   Reaffirms the mid-term global review of the implementation
of the Programme of Action for the Least Developed Countries for the
1990s, in particular the appropriate actions in favour of least
developed countries concerning their official bilateral, commercial
and multilateral debt;

     10.  Notes with concern the continuing burden of debt and debt-
service obligations of middle-income countries, including in
particular those in Africa, and encourages creditors, including
multilateral financial institutions and commercial banks, to continue
to address their obligations effectively;

     11.  Stresses the importance of continued concessional Enhanced
Structural Adjustment Facility lending operations for low-income
countries;

     12.  Also 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
ably 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;

     13.  Further stresses the need for, in addition to debt-relief
measures that include debt and debt-service reduction, new financial
flows to debtor developing countries, 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,
stabilization and structural adjustment programmes and the eradication
of poverty by the developing countries so as to enable them to
extricate themselves from the debt overhang and to assist them in
achieving sustained economic growth and sustainable development;

     14.  Stresses the need for the expeditious conclusion of the
ongoing work of the International Monetary Fund, in close
collaboration with the World Bank, on the steps to address the
problems of those low-income countries that are undertaking strong
adjustment and reform programmes but whose debt situation, including
debt to multilateral institutions, may prove unsustainable, even after
debt reduction on the Naples terms, within this context urging donor
countries to fulfil promptly their commitments to the tenth
replenishment of the International Development Association and to
support a significant replenishment through the eleventh replenishment
of the Association, and requests the Secretary-General to report to
the General Assembly at its fifty-first session on the outcome of the
meeting of the Development Committee scheduled for April 1996;

     15.  Notes the initiative to develop new, parallel financing
arrangements, complementary to the General Arrangements to Borrow,
with the aim of doubling the resources currently available under the
General Arrangements to Borrow;

     16.  Recognizes that the evolving debt strategy must be
accompanied by a favourable and supportive international 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 net food-
importing developing countries;  5/

     17.  Invites the International Monetary Fund to continue devising
concrete policy measures and actions to address the problems faced by
indebted developing countries;

     18.  Underscores the need for encouragement of private flows to
all countries, in particular developing countries, while reducing the
risks of volatility;

     19.  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 the debtor countries,
in particular low-income groups;

     20.  Urges the international community, particularly the creditor
countries and multilateral institutions, as well as commercial banks
and other lending institutions, when continuing the implementation of
various measures aimed at contributing to effective, equitable,
development-oriented and durable solutions to the external debt and
debt-servicing problems of developing countries, as well as when
exploring the need for additional and innovative measures to alleviate
substantially the external debt and debt-service burden of developing
countries, to ensure that the debt strategy evolved through the years
is fully implemented and taken into account;

     21.  Recognizes the urgent need for the international community
to assist developing countries, in particular the poorest and heavily
indebted countries, in mobilizing the resources needed for their
development efforts, and also recognizes that effective, equitable,
development-oriented and durable solutions to the external debt and
debt-servicing problems of developing countries could contribute
towards releasing domestic resources and sustaining their development
efforts, in particular those for social development;

     22.  Calls upon the international community, including the
relevant institutions, to build upon the momentum gained from the
various meetings that have addressed debt issues and to address the
external debt and debt-servicing problems of developing countries,
particularly those of the least developed countries, in the
elaboration of an agenda for development;

     23.  Also calls upon the international community, including the
United Nations system, and invites the Bretton Woods institutions, as
well as the private sector, to take urgent measures and action 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, addressing, inter alia, and
where appropriate, the question of external debt;

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

                                             96th plenary meeting
                                                 20 December 1995


                              Notes

1/   A/50/752-S/1995/1035, annex III.

2/   A/50/254-S/1995/501, annex I.

3/   A/50/518, annex.

4/   A/50/379 and Corr.1.

5/   See Legal Instruments Embodying the Results of the Uruguay Round
of Multilateral Trade Negotiations, done at Marrakesh on 15 April 1994 (GATT
secretariat publication, Sales No. GATT/1994-7).

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Date last posted: 15 January 2000 16:15:30
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