The General Assembly,
 
      Recalling its resolutions 48/165 of 21 December 1993 and 50/92 of 20
December 1995 and the relevant provisions of the report of the Ad Hoc
Committee of the Whole of the General Assembly for the Mid-term Review of the
Implementation of the United Nations New Agenda for the Development of Africa
in the 1990s, as well as the results, as agreed, of all major United Nations
conferences and summit meetings held since the beginning of the 1990s,
 
      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,
 
      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 taken 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 debt-relief
measures taken by the Paris Club on the basis of the Naples terms of December
1994,
 
      Stressing the need for a full and swift implementation of those
initiatives, which will further assist 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,
 
      Emphasizing the importance for debtor countries of continuing to pursue
and intensify their efforts with respect to economic reforms, and
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,
 
      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 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,
 
      Noting the situation in some creditor countries with economies in
transition in addressing the external debt and debt-servicing problems of
developing countries,
 
      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,
 
      1.    Takes note of the report of the Secretary-General on the
developing country debt situation as at mid-1996;
 
      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.    Notes that further progress, including swift implementation of
innovative approaches and concrete measures, is essential for 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;
 
      4.    Stresses 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 so
as to favour their exit from debt and debt-servicing problems, and also
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, increased resource flows, access to international financial
markets, flow of financial resources and improved access to technology for the
developing countries;
 
      5.    Also stresses that the evolving debt strategy must be accompanied
by a favourable and supportive international economic 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 the net food-importing developing countries;
 
      6.    Welcomes the Heavily Indebted Poor Countries Debt Initiative
endorsed by the Interim Committee of the International Monetary Fund and the
Development Committee of the World Bank and the International Monetary Fund,
designed to enable eligible heavily indebted poor countries to achieve a
sustainable debt situation through coordinated action by all creditors on the
basis of adjustment efforts by the debtor countries;
 
      7.    Recognizes that the implementation of the Initiative requires
additional financial resources from both bilateral and multilateral creditors
without affecting the support required for development activities of
developing countries, welcomes the commitment made to provide additional
resources for the Initiative, and invites bilateral donors to contribute to
the Trust Fund for the implementation of the Initiative;
 
      8.    Stresses the urgent need for the developed countries to give the
Initiative the support it both needs and deserves and to implement it flexibly
to ensure that the performance already achieved is taken into account in
determining the duration of adjustment required to reach, with the assistance
of all creditors, an exit from debt rescheduling;
 
      9.    Also stresses the importance of implementing the Initiative's
eligibility criteria flexibly, in a transparent manner, and with the full
involvement of the debtor country, and further stresses the importance of
continuously evaluating and actively monitoring the implications of the
existing terms of the eligibility criteria in the implementation of the
Initiative, so as to ensure sufficient coverage of heavily indebted poor
countries;
 
      10.   Underlines the importance of the transparency and involvement of
debtor countries in any review and analysis that will be conducted during the
adjustment period;
 
      11.   Welcomes the decision taken by the Paris Club to go beyond the
Naples terms to provide debt reduction, including some debt stock forgiveness
for the poorest and most heavily indebted countries, stresses the need for the
swift implementation of that decision, and urges all other bilateral creditors
to make comparable contributions in the context of coordinated efforts by all
countries;
 
      12.   Recognizes the efforts of indebted developing countries in regard
to 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;
 
      13.   Invites creditor countries, private banks and multilateral
financial institutions, within their prerogatives, to continue 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;
 
      14.   Invites the International Monetary Fund to continue devising
concrete measures and action to address the problems faced by indebted
developing countries, including the provision of bilateral contributions and,
if the need arises, to consider optimizing its reserves management in order to
facilitate the financing of the Enhanced Structural Adjustment Facility;
 
      15.   Reaffirms the Mid-term Global Review of Progress towards the
Implementation of the Programme of Action for the Least Developed Countries
for the 1990s, in particular the appropriate actions in favour of those
countries concerning their official bilateral, commercial and multilateral
debt;
 
      16.   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;
 
      17.   Stresses the importance of continued concessional Enhanced
Structural Adjustment Facility lending operations for low-income developing
countries;
 
      18.   Also stresses the need for, in addition to debt-relief measures
that include debt and debt-service reduction, new financial flows to debtor
developing countries from all sources, 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 attract new investment and to assist them in achieving
sustained economic growth and sustainable development;
 
      19.   Further 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.   Calls upon the international community, including the United
Nations system, and invites the Bretton Woods institutions, as well as the
private sector, to take appropriate 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 related to the question of external debt;
 
      21.   Requests the Secretary-General, in close cooperation with the
Bretton Woods institutions and other relevant bodies of the United Nations
system, to closely follow the Heavily Indebted Poor Countries Debt Initiative
and to report to the General Assembly at its fifty-second session on the
implementation of the Initiative and of the present resolution.