The Paris Club of official creditors has offered steadily better terms to poor countries.
Few Paris Club charges are creditworthy enough to have raised money in the bond market.
Yet debts held by the Paris Club are only around a third of Iraq's total sovereign obligations.
At least a consensus has finally been reached by the Paris Club on reducing Iraq's crippling debt burden.
The Paris Club this week sent a cross letter, saying that Russia must pay, promptly and in full.
In addition, in 1999, the Paris Club of creditor nations granted Honduras a moratorium on debt service payments through 2002.
Settling with the Paris Club and the bondholders would enable Argentina to secure financing from the markets on relatively favourable terms.
But, apparently after the Paris Club made its disapproval known, Ishaq Dar, the finance minister, said Pakistan will not do this.
Between holdout bondholders and the Paris Club of rich nations, somewhere between 7% and 8% of the original amount remains outstanding.
"a generous rescheduling of official debt and reductions of 50% or more of the principal on official debt" in Paris Club arrangements.
In a further boost to Burma, the Paris Club of creditor nations has agreed cancel almost half of its debts to member countries.
It cannot tap the international capital markets, because it has still not settled with some bondholders nor its sovereign creditors in the Paris Club.
Grantham Mayo owns London Club debt, which was restructured in 1993. (The London Club and the Paris Club often clash when countries try to restructure their debts).
She led the Paris Club negotiations to reschedule her country's debt and earned rave reviews as managing director of the World Bank in 2007-11.
And the Kirchners, who govern as a couple, have made their defiance of the IMF, the Paris Club and the bondholders a point of pride.
They may not be the Paris Club has not said how Pakistan should respond to its rescheduling request and it is not clear how it intends to proceed.
On Tuesday, the Paris Club of creditor governments, including the US, UK, France and Germany, called on other nations to follow its lead in cancelling debts to Haiti.
But there are political risks: One creditor group, the so-called Paris Club of government lenders, would like the Nigerians to restructure debt owed to the so-called London Club of commercial creditors.
Many bond investors still hope that, after a token effort, Pakistan will say a bond-rescheduling is impossible, and that the Paris Club will release it from the condition.
The Paris Club of official creditors recently told Pakistan that if it wanted more help, it should include Eurobonds not just bank loans in its renegotiation of its commercial debt.
Iraq's massive debts would be dealt with by multilateral systems such as the Paris Club - thus dispelling Russian fears that the US would invalidate some of its claims.
Nigeria pulled out of its IMF program in April 2002, after failing to meet spending and exchange rate targets, making it ineligible for additional debt forgiveness from the Paris Club.
There is also growing optimism that Pakistan will get generous terms for rescheduling its debt with the Paris Club - a club of rich states which lend money to less developed countries.
The last one occurred less than two years ago when Warsaw rescheduled its debts to the Paris Club of official creditors with a grace period extending through 1992 and repayments postponed until 1993-97.
CENTERFORSECURITYPOLICY: Safeguarding US Equities While Aiding Poland And Hungary
So now the government that heroically told the International Monetary Fund (read: Western bankers) to stuff it is apparently willing to work with the IMF and thus square things with the Paris Club.
The terms and conditions of any further Paris Club reschedulings for Poland should be publicly debated before they are finalized to avoid the current subordination of taxpayer claims to those of Western commercial banks.
The restructuring, done under the auspices of the Paris Club, an informal group of western creditor countries, came earlier than expected and just in time for the first round of Iraqi elections expected in January.
The terms and conditions of any further Paris Club reschedulings for Poland a form of debt relief that should be withheld for the six-month trial period called for above must be publicly debated before they are finalized.
All Western financial assistance measures intended to stimulate Polish reforms such as IMF support, Paris Club rescheduling, OPIC coverage and GSP eligibility must be fully reversible in the event of subsequent political crackdowns, financial default, or other missed milestones.
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