The impact of banking regulation on development aid and external debt management

The target of re-establishing the creditworthiness of major indebted countries remains a distant one. However, some countries are beginning to benefit from debt reduction operations following the strengthened debt strategy of the Brady plan. There meanwhile exists broader experience of implementation which might create some confidence. Nearly three years after the acceptance of the strengthened debt strategy, the time has come to harmonise debt management and tax, accounting and regulatory practices for financial institutions. This is especially true since national policies in these areas have been determined mainly by prudential and fiscal considerations.