External debt sustainability and development A/RES/67/198 reform and strengthen the international financial system, and recognizing that any deepening of the ongoing adverse impacts of the world financial and economic crisis threatens debt sustainability in developing countries, Recognizing the importance of efforts and cooperation undertaken at the national, regional and international levels in response to the challenges posed by the world financial and economic crisis, and acknowledging that the impacts of the crisis on development continue, entail the possibility of undermining the progress made towards achieving the internationally agreed development goals, including the Millennium Development Goals, and threaten debt sustainability in many countries, especially developing countries, through, inter alia, the consequences on the real economy and government revenue and the need to increase borrowing to mitigate the negative impacts of the crisis, Recognizing also the important role, on a case-by-case basis, of debt relief, including debt cancellation, as appropriate, and debt restructuring as debt crisis prevention and management tools for mitigating the impact of the world financial and economic crisis on developing countries, Recognizing further the role of private capital flows in mobilizing financing for development, stressing the challenges posed by excessive short-term capital inflows to many developing countries, including to their debt sustainability, and encouraging further review of the benefits and disadvantages of the macroprudential measures available to mitigate the impact of volatile capital flows, Expressing concern that a number of low- and middle-income countries face challenges in servicing their debt, Expressing deep concern that, in spite of international efforts, many least developed countries struggle with high debt burdens and are classified, in accordance with the debt sustainability assessments, as being in debt distress or at high risk of debt distress, Noting with appreciation that the Heavily Indebted Poor Countries Initiative, the Multilateral Debt Relief Initiative and bilateral donors have provided substantial debt relief to 34 countries that have reached the completion point under the Heavily Indebted Poor Countries Initiative, which has provided needed debt relief and enabled them to reallocate resources to investments in social services, while expressing concern that some post-completion point countries remain classified as being at high risk of debt distress and need to avoid rebuilding unsustainable debt burdens, Convinced that enhanced market access for goods and services of export interest to developing countries contributes significantly to debt sustainability in those countries, 1. Takes note of the report of the Secretary-General; 10 2. Emphasizes the special importance of a timely, effective, comprehensive and durable solution to the debt problems of developing countries to promote their economic growth and development; Stresses the importance of responsible lending and borrowing, emphasizes 3. that creditors and debtors must share responsibility for preventing unsustainable debt _______________ 10 A/67/174. 3/8