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Презентация на тему The Burden of Debt

DEFINITIONA debt burden is a large amount of money that one country or organization owes to another and which they find very difficult to repay.In the case of governments, interest charges on the national debt  are paid for out of taxation and other receipts.
The Burden of DebtAnna Vostrikova Marat SakhgereevEkaterina MikhailovaMaria Sumarokova Ekaterina Keshisheva DEFINITIONA debt burden is a large amount of money that one country or organization owes to another and which they find very difficult to repay.In the case of governments, interest charges on the national debt  are paid for out of taxation and other receipts. MAIN POINTSCaused by the global financial crisis;Rises the level of aggregate net MARKET RISKSystematic market risk results from overall movement of prices and policies ARGENTINA’S CASE1970s: borrowed enormous amounts of money at a low interest rate1980s: MAKING GLOBALIZATION WORK: WHAT TO DO ABOUT DEVELOPING COUNTRY DEBT  Debt DEBT RELIEF FOR THE POOREST1996 - the international community recognized the need But there are still many countries waiting for debt relief…July 2005 28
Слайды презентации

Слайд 2 DEFINITION
A debt burden is a large amount of money that one country

DEFINITIONA debt burden is a large amount of money that one country or organization owes to another and which they find very difficult to repay.In the case of governments, interest charges on the national debt  are paid for out of taxation and other receipts.

or organization owes to another and which they find very difficult to repay.
In the case of governments, interest charges on the national debt  are paid for out of taxation and other receipts.


Слайд 3 MAIN POINTS
Caused by the global financial crisis;
Rises the

MAIN POINTSCaused by the global financial crisis;Rises the level of aggregate

level of aggregate net government debt in the world;
Poses

risks to fiscal and macroeconomic stability and also imply transfers of wealth across generations;
Rise of the ratio of world debt to world GDP.
May ultimately fall on the working-age population (ages 20-64).

Слайд 4 MARKET RISK
Systematic market risk results from overall movement

MARKET RISKSystematic market risk results from overall movement of prices and

of prices and policies in the economy
The unsystematic market

risks arises when the price of the specific asset or instrument changes due to events linked to the instrument or asset

Marker Risk is the risk originating in instruments and assets traded in well-defined markets
Market risks can result from macro- and micro- sources


Слайд 5 ARGENTINA’S CASE
1970s: borrowed enormous amounts of money at

ARGENTINA’S CASE1970s: borrowed enormous amounts of money at a low interest

a low interest rate

1980s: interest rate raised by the

US

1997: global crisis affects Argentina’s debt

2001: country's default

Today: $20 billion to pay off

Слайд 6 MAKING GLOBALIZATION WORK: WHAT TO DO ABOUT DEVELOPING

MAKING GLOBALIZATION WORK: WHAT TO DO ABOUT DEVELOPING COUNTRY DEBT Debt

COUNTRY DEBT
Debt Relief Categories:
”Normal" very poor countries
Countries

w/ corrupted oppressive governments
Emerging
Middle-income countries that have been lent too much

Слайд 7 DEBT RELIEF FOR THE POOREST
1996 - the international

DEBT RELIEF FOR THE POOREST1996 - the international community recognized the

community recognized the need for debt relief for highly

indebted poor countries.
HIPC

For the poorest countries loans at low interest rates are often provided by:
The World Bank
The IMF
Advanced industrial countries


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