Toby Nangle, of Threadneedle Asset Management, estimates this will save about £15m in interest payments per year, equivalent to a debt reduction of more than £500m.
Tony Nangle of Threadneedle Asset Management, the second-biggest holder of UK bonds, estimates the taxpayer will save £15m in interest repayments a year as a result of the redemption, equivalent to a debt reduction of more than £500m.
Viewed in present-value terms, the initiative itself offers debt reduction of $27.5 billion, which is more than double the $12.5 billion available before.That is a big change if it attracts genuinely new aid money.
Accordingly, our results show that snow-ball effects associated with the cyclical component of primary deficit are responsible by a cumulative debt reduction of 18.04 % points.
While the Mexicans had hoped for a debt reduction of 55%, it appears they will have to settle for about 35%.
Adding $2 trillion in new debt reduction on top of that would be a "notable achievement," as the Center puts it, in a capital supposedly bound by gridlock.
But finance ministers are still at odds over the effect of debt reduction on economic growth.
Expanding the aims of the Tropical Forest Conservation Act, I will ask Congress to provide $100 million to support the exchange of debt reduction for the protection of tropical forests.
The banks — Citigroup, Wells Fargo, Bank of America, JPMorgan Chase and former mortgage divisions of Ally — are required to use debt reduction for 60 percent of their consumer relief.
All these factors will affect the rate of debt reduction, for better or worse.
