This plan is based on responsibility, accountability, and dignity.
1. If any nation borrows money, such nation has to repay it. If a nation cannot afford to repay its debts, then, that nation should not borrow any money. Consider AID instead.
2. If any organization plans to lend money to a nation, such a lender must take into account the credit-worthiness of the nation, and that nation's ability to repay her debt.
3. Any nation that cannot repay its debt may declare bankruptcy. New bankruptcy laws focusing on Nations should be formulated.
4. Any borrower that agrees to COMPOUND INTEREST arrangement has itself to blame.
5. Loan payments should be capped at the time the loan is negotiated: for example, total payment on any loan should not exceed 300% of the original loan value.
For existing debts:
1) Any debtor-nation that has made payments of at least 250% of the original loan should have the rest of the debt cancelled, unless such a debtor-nation has tangible liquid assets (Nigeria, for example).
2) Any debtor-nation whose leaders have the reputation of stealing from the national coffers (like Nigeria) can petition the lenders to recover looted debtor-national assets and count this towards full loan repayment. The reason is that stolen wealth from debtor-nations is sitting in lender-nation banks, and these lender nations are well aware of this.