Voluntary Approaches to Debt Relief PDF Download

Author: John Williamson
Publisher: Peterson Institute
ISBN:
Category : Debt equity conversion
Languages : en
Pages : 98

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Author: International Monetary Fund
Publisher: International Monetary Fund
ISBN: 1451954328
Category : Business & Economics
Languages : en
Pages : 50

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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.

Author: Ishac Diwan
Publisher: World Bank Publications
ISBN:
Category : Debt equity conversion
Languages : en
Pages : 33

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Book Description
When lenders participate voluntarily in a buyback of debt claims, both the price paid for repurchased claims and the secondary market price of the remaining debt rise-- so all creditors realize a net benefit. In contrast, the menu approach to debt reduction allows the debtor to reduce its debt at cheaper prices.

Author: Elhanan Helpman
Publisher:
ISBN:
Category : Capital movements
Languages : en
Pages : 76

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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.

Author: Jeffrey Sachs
Publisher: World Bank Publications
ISBN:
Category : Debt equity conversion
Languages : en
Pages : 64

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Book Description
Debt reduction poses collective action problems that cannot be efficiently handled in the framework of voluntary market-based approaches. Instead we need concerted debt restructuring, based on below-market interest rates -- perhaps linked with credit enhancement by official creditors -- to provide the most direct mechanism for efficient, equitable sharing of losses.

Author: Martin Guzman
Publisher: Columbia University Press
ISBN: 023154202X
Category : Business & Economics
Languages : en
Pages : 307

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Book Description
The current approach to resolving sovereign debt crises does not work: sovereign debt restructurings come too late and address too little. Though unresolved debt crises impose enormous costs on societies, many recent restructurings have not been deep enough to provide the conditions for economic recovery (as illustrated by the Greek debt restructuring of 2012). And if the debtor decides not to accept the terms demanded by the creditors, finalizing a restructuring can be slowed by legal challenges (as illustrated by the recent case of Argentina, deemed as "the trial of the century"). A fresh start for distressed debtors is a basic principle of a well-functioning market economy, yet there is no international bankruptcy framework for sovereign debts. While this problem is not new, the United Nations and the global community are now willing to do something about it. Providing guidance for those who intend to take up reform, this book assesses the relative merits of various debt-restructuring proposals, especially in relation to the main deficiencies of the current nonsystem. With contributions by leading academics and practitioners, Too Little, Too Late reflects the overwhelming consensus among specialists on the need to find workable solutions.

Author: United States. Congress. Senate. Committee on Banking, Housing, and Urban Affairs. Subcommittee on International Finance and Monetary Policy
Publisher:
ISBN:
Category : Debt relief
Languages : en
Pages : 348

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Author: Jeffrey Sachs
Publisher:
ISBN:
Category : Business & Economics
Languages : en
Pages : 60

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Author: Mr.Peter Wickham
Publisher: International Monetary Fund
ISBN: 9781557750419
Category : Business & Economics
Languages : en
Pages : 430

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Book Description
This book, edited by Jacob A. Frenkel, Michael P. Dooley, and Peter Wickham, presents a sample of the work of the IMF and that of world-renowned scholars on the analytical issues surrounding the explosion of countries with debt-servicing difficulties and describes debt initiatives and debt-reduction techniques that hold the best promise for finding a lasting solution to the problems of debtor countries.

Author: International Monetary Fund
Publisher: International Monetary Fund
ISBN: 149832892X
Category : Business & Economics
Languages : en
Pages : 39

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