Abstract

Official creditors have provided cash-flow relief to a large number of low-income countries through Paris Club reschedulings. SAF- and ESAF-eligible countries account for half of the Paris Club rescheduling countries but were involved in nearly two thirds of the reschedulings since 1976, as most of these countries had repeatedly sought relief from the Paris Club (Chart 6). Generally the reschedulings for these countries were more comprehensive in coverage and percentage of debts rescheduled than those for other creditors. However, given the protracted nature of their balance of payments problems, many of these countries experienced serious difficulties in adhering to the repayment schedules from previous agreements, largely because, as creditors recognized, the repeated application of standard terms over a long period had not provided an adequate response to the medium-term debt-servicing problems of the poorest and most heavily indebted countries.