Author: World BankPublisher:
ISBN:
Category :
Languages : en
Pages : 39
Book Description
VOLUNTARY DEBT-REDUCTION OPERATIONS.
Author: World BankIllustrative Effects of Voluntary Debt and Debt Service Reduction Operations
Author: Ruben LamdanyPublisher:
ISBN:
Category : Business & Economics
Languages : en
Pages : 60
Book Description
This paper discusses the potential effects of voluntary debt and debt service reduction operations supported by multilateral agencies and governments of creditor countries. The paper considers alternative financial structures for these operations : buy-backs, par and discounted debt exchanges and concessional debt restructurings. The note concludes that for relatively small market based operations, the overall benefits to the country under those alternative structures are likely to be very similar. Tax and regulatory benefits as well as the possibility of creating some degree of seniority for exit bonds, could enhance the benefits obtained through debt exchanges relative to buy-backs. Concessional loan restructurings are the most difficult to evaluate, because the outcome hinges on the determinants of the bargaining strength of each side, as well as on the economics of debt reduction.
Voluntary Debt-reduction Operations
Author: Ruben LamdanyPublisher:
ISBN: 9780821311592
Category : Bolivie
Languages : en
Pages : 28
Book Description
Voluntary Debt Reduction
Author: International Monetary FundPublisher: International Monetary Fund
ISBN: 1451954328
Category : Business & Economics
Languages : en
Pages : 50
Book Description
In an economy with a debt overhang, investment depends on expected tax rates. On the other hand, expected tax rates depend on the debt’s face value. Therefore investment depends on the face value of debt. I show that this may lead to a positive or negative association between debt and investment depending on the degree of international capital mobility and attitudes toward risk. There may also exist multiple equilibria; with high and low investment levels. The paper explores the desirability of debt reduction in this environment. First, it characterizes circumstances in which debt reduction is desirable from the collective point of view of the creditors. Second, it formulates the forgiveness decision as a noncooperative game among creditors and explores the scope for debt reduction as an outcome of this game.
Voluntary Approaches to Debt Relief
Author: John WilliamsonPublisher: Peterson Institute
ISBN:
Category : Debt equity conversion
Languages : en
Pages : 98
Book Description
Voluntary Debt Reduction
Author: Elhanan HelpmanPublisher:
ISBN:
Category : Capital movements
Languages : en
Pages : 76
Book Description
In an economy with a debt overhang, investment depends on expected tax rates. On the other hand, expected tax rates depend on the debt's face value. Therefore investment depends on the face value of debt. I show that this may lead to a positive or negative association between debt and investment depending on the degree of international capital mobility and attitudes toward risk. There may also exist multiple equilibria; with high and low investment levels. The paper explores the desirability of debt reduction in this environment. First, it characterizes circumstances in which debt reduction is desirable from the collective point of view of the creditors. Second, it formulates the forgiveness decision as a noncooperative game among creditors and explores the scope for debt reduction as an outcome of this game.
Illustrative effects of voluntary debt and debt service reduction operations
Author: Ruben LamdanyVoluntary Debt Reduction
Author: Sovereign Debt Relief Schemes and Welfare
Author: Mr.Aasim M. HusainPublisher: International Monetary Fund
ISBN:
Category : Business & Economics
Languages : en
Pages : 24
Book Description
This paper shows that concerted debt reduction may be welfare-improving even when the investment disincentive effect of a debt overhang is not large enough to place the debtor country on the wrong side of the debt Laffer curve. Whether the appropriate relief scheme involves debt reduction or new money, however, depends on whether investment disincentives or liquidity constraints dominate. It is shown that, except under very special circumstances, mixed policy packages involving both debt and liquidity relief may not yield the desired results.
From Toronto Terms to the HIPC Initiative
Author: Ms.Christina DasekingPublisher: International Monetary Fund
ISBN: 1451856237
Category : Business & Economics
Languages : en
Pages : 30
Book Description
The low-income country debt crisis had its origins in weak macroeconomic policies, and official creditors’ willingness to take risks unacceptable to private lenders. Payments problems were initially addressed through nonconcessional reschedulings and new lending that maximized financing while containing the budgetary costs for creditors. This led to an unsustainable buildup in debt stocks. More recently, debt ratios have improved, reflecting both adjustment and substantial debt relief. The paper estimates debt relief initiatives since 1988 have cost creditors at least $30 billion, and possibly much more. This compares with the estimated costs of about $27 billion under the enhanced HIPC Initiative.