Without a reduction in debt-service payments, the economy will have no funds available either to satisfy consumer aspirations or to promote economic growth.

She aimed to meet debt-service payments and reduce debt size in the long run.

In addition, higher interest rates can cut profits by raising a company's debt-service payments.

Mr. Caplan said yesterday that it was too early to say exactly how much debt-service payments would rise by 2005 and the following years.

For some local issuers, making debt-service payments will be a challenge, no question.

Bond insurers have never had to make debt-service payments because of a natural disaster, but that may change.

He noted that last year the debt-service payments of developing countries exceeded revenues by $15 billion.

Instead, he estimated that it would cost $70 million the first year in debt-service payments.

This would reduce debt-service payments by $1 billion a year.

"Many of the one-time actions are questionable," the agency said in a statement, and only result in putting off debt-service payments.