A/HRC/11/10 page 8 B. The definition of external debt and debt service 22. Foreign (or external) debt is debt owed to non-residents and consists of public, publicly guaranteed, and private non-guaranteed long-term debt, short-term debt and use of IMF credit. 23. Debt service refers to payments of the principal (original) amount due under a loan agreement as well as interest actually paid on total long-term debt (public and publicly guaranteed and private non-guaranteed), use of IMF credit and interest on short-term debt. In circumstances where debts are longstanding, interest payments typically constitute a large share of the debt service. C. The relationship between debt and human rights 24. While it is generally accepted that external finance (including foreign loans) can contribute to countries’ development, excessive debt burdens continue to be a significant obstacle both to development and the realization of human rights, particularly economic, social and cultural rights, as well as the attainment of the Millennium Development Goals, in developing countries.5 Studies indicate that some countries spend more each year on servicing debt than they do on the basic needs of their people or on human rights-related public services, such as education and health care, combined. For instance, in 2005, Lebanon spent 52 per cent of its budget on debt service as compared with 23.1 per cent on education and health; Jamaica spent 27.9 per cent on debt service and 16.1 per cent on education and health; and Bulgaria spent 23 per cent on debt service and 11.6 per cent on education and health.6 25. The independent expert recognizes that the current multilateral debt relief initiatives have delivered some benefits in the form of reduced debt service payments and increased funds for poverty reduction expenditure for some countries.7 However, the impact of these debt relief 5 See United Nations, Claiming the Millennium Development Goals: A Human Rights Approach, (United Nations publication, Sales No. K. 08.XIV.6) (New York and Geneva: United Nations, 2008).1 6 S. Mandel, Debt relief as if Justice Mattered (London: New Economics Foundation, 2008); between 1992-1997, the portion of the budget dedicated to basic social services and to debt service for some countries was as follows: Cameroon - 4.0 per cent on social services and 36.0 per cent on debt service; Côte d’Ivoire - 11.4 per cent on social services and 35.0 per cent on debt service; Kenya - 12.6 per cent on social services and 40.0 per cent on debt service; Zambia - 6.7 per cent on social services and 40.0 per cent on debt service; Niger - 20.4 per cent on social services and 33.0 per cent on debt service; Tanzania - 15.0 per cent on social services and 46.0 per cent on debt service; Nicaragua - 9.2 per cent on social services and 14.1 per cent on debt service; see D. Millet and E. Toussaint, “Figures relating to the debt for 2009”, Committee for the Abolition of Third World Debt (CADTM). 7 See Eurodad, “Multilateral debt: one step forward, how many back?” (April 2007).