The present report, submitted in compliance with General Assembly resolution 61/188, reviews recent developments in the external debt of developing countries and the related recent phenomenon of capital flows from developing to developed
countries. It analyses the role of new borrowing strategies and new debt instruments and reviews progress in the Highly Indebted Poor Countries Initiative and developments in Paris Club rescheduling. The report points to several issues related to the debt sustainability framework for low- and middle-income countries and discusses potential vulnerabilities arising from the increasingly important role of structured finance