Although the government s stimulus policies have increased the national debt, the debt GDP ratio remains relatively low, at roughly 37 .

Spain and Ireland had fiscal surpluses and low debt GDP ratios before the crisis.

In short, with low enough interest rates, any debt to GDP ratio is manageable.

But Ireland and Spain had budget surpluses and low debt before the crisis, which quickly turned into large deficits and high debt.

Even if interest rates are currently low, he noted, they will rise, thereby increasing the debt service burden on the newly accumulated debt.

The gains from MDRI debt relief will amount to precious little if low income countries emerge from their debt burdens only to start the cycle anew by amassing fresh debt.

Nominal interest rates for periphery countries sovereign debt have remained extremely low, and, even when taking into account expectations of very low inflation (or even deflation), real interest rates are low.

Together with debt relief, these policies have resulted in low levels of public debt, relatively sound financial systems, and most important  rising living standards.

The system wide impact of national shocks is less severe when cross border debt is low.

Buenos Aires maintains low debt levels and its service requires less than 3 of the budget.

At the same time, we must ensure that low income countries use debt relief and aid efficiently.

Greece overspent, but Spain and Ireland had fiscal surpluses and low debt to GDP ratios before the crisis.

So the question is not what to do when debt gets near its limit, however high or low.

The relatively low debt service cost also removes the justification for Syriza's demands for an end to austerity.

Countries with European style growth rates could handle debt obligations of 60 of GDP when interest rates were low.

Weak labor markets, low inflation, and debt overhang suggest that a fundamental re ordering of priorities is in order.

So far, the country has not experienced a debt crisis, and interest rates remain exceptionally low, at around 1 .

So, even when public deficits and debt are low before a crisis, they can rise sharply after one erupts.

But Spain had a surplus and a low debt ratio before the crisis, and it, too, is in depression.

Low or negative population growth also implies lower potential economic growth and therefore worse debt to GDP dynamics and increasingly grave doubts about the sustainability of public sector debt.

Instead, they focused exclusively on US foreign debt, ignoring household debt (mortgage and consumer debt), public debt, business debt, and financial debt.

Another priority is to ensure that low income countries that are striving to meet the MDG s, and which have large financing requirements, avoid a new spiral of indebtedness. The gains from MDRI debt relief will amount to precious little if low income countries emerge from their debt burdens only to start the cycle anew by amassing fresh debt.

Debt

Latin America s low personal debt levels have created an opportunity to build a constructive culture of borrowing while expanding economic opportunity.

That combination produced massive foreign debt, a low level of exports relative to the size of the economy, and high inflation.

Indeed, the implementation of the Multilateral Debt Relief initiated by the G 8 already provides an unprecedented opportunity to complete the process of debt relief for a large number of low income countries.

As the crisis gathered pace, Ukraine was completely cut off from international financial markets, despite sound public finances and low foreign debt.

Because the debt can be refinanced at such low rates, rollover risk is very low, allowing debtors who would be considered insolvent under normal circumstances to carry on much longer than they otherwise could.

More debt relief encompassing more countries and more debt (including bilateral debt) is needed.

More debt relief encompassing more countries and more debt (including bilateral debt) is needed.

A country drowning in debt needs debt restructuring.

An asset diet rich in equities and direct investment and low in debt cannot substitute for other elements of fiscal and financial health.

The polarization of borrowing costs has politically explosive distributional effects Germany is borrowing and refinancing its existing debt at artificially low interest rates.

Northern European countries particularly Germany and the Netherlands prided themselves on traditionally maintaining moderate debt to GDP ratios and relatively low interest rates.

Savvy investors, like frustrated voters, recognize that low growth and high unemployment actually enlarge deficits and add to debt in the short run.

Battery is low!

It's very low.

It's too low.

Raising debt for the purposes of significantly increasing or ensuring long run growth makes sense, especially in an environment of low real interest rates.

Likewise, Greece can now manage its public debt burden, which stands at about 175 of GDP, thanks to the ultra low interest rates and long maturities (longer than those on Japan s debt) granted by its European partners.

Unsustainable private debt problems must be resolved by defaults, debt reductions, and conversion of debt into equity.

The country simply cannot keep on piling debt upon debt.

Their countries sank deeply into debt, with low rates of growth, endemic corruption, and bloated public sectors. Prisons were overcrowded, and cultural expression was stifled.

It is sobering to note that almost half of high debt episodes since 1800 are associated with low or normal real (inflation adjusted) interest rates.

(d) To acknowledge the problems of the debt sustainability of some low income countries that are not heavily indebted, in particular those facing exceptional circumstances