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Sovereign Debt [electronic resource] : A Survey of Some Theoretical and Policy Issues, Arora, Vivek B..

Author/Creator:
Arora, Vivek B.
Publication:
Washington, D.C. : International Monetary Fund, 1993.
Series:
IMF eLibrary
IMF Working Papers; Working Paper No. 93/56.
IMF Working Papers; Working Paper No. 93/56
Format/Description:
Government document
Book
1 online resource (34 p.)
Local subjects:
Amortization payments. (search)
Amount of debt. (search)
Amount of debt outstanding. (search)
Central bank. (search)
Debt accumulation. (search)
Debt burden. (search)
Debt contract. (search)
Debt contracts. (search)
Debt crises. (search)
Debt crisis. (search)
Debt default. (search)
Debt discount. (search)
Debt obligations. (search)
Debt outstanding. (search)
Debt overhang. (search)
Debt reduction. (search)
Debt relief. (search)
Debt renegotiation. (search)
Debt rescheduling. (search)
Debt restructuring. (search)
Debt service. (search)
Debt service obligations. (search)
Debt service payments. (search)
Debt servicing. (search)
Debt strategies. (search)
Debt-equity. (search)
Debtor countries. (search)
Debtor country. (search)
Domestic currency. (search)
Domestic economic policies. (search)
Domestic economic policy. (search)
External borrowing. (search)
External debt. (search)
External debt service. (search)
External debt servicing. (search)
External financing. (search)
External payments. (search)
External payments arrears. (search)
Heavily indebted countries. (search)
Indebted countries. (search)
International borrowing. (search)
International debt. (search)
International debt crisis. (search)
International lending. (search)
Low debt. (search)
Net debt. (search)
Official creditors. (search)
Private creditors. (search)
Private debt. (search)
Repayment capacity. (search)
Repayments. (search)
Repurchases. (search)
Sovereign debt. (search)
Sovereign debt crisis. (search)
Sovereign debt renegotiation. (search)
Stock of debt. (search)
Bolivia. (search)
Summary:
This paper surveys the literature on sovereign debt that deals with the issues of a country’s ability-to-pay, its willingness-to-pay, and the policy responses to the debt crisis of the 1980s. The existence of an ability-to-pay problem suggests a need for debt reduction, but plans for debt relief face potential incentive problems, and sovereign debt repurchases are not always a welfare maximizing method of debt restructuring. The paper synthesizes the main conclusions on these issues. With a willingness-to-pay problem, the potential penalties for debt repudiation are important in the endogenous determination of the repayment outcome. Penalties that are intertemporal in nature have different implications for debt repudiation than do intratemporal penalties. In addition, the asymmetric distribution of the costs of default can lead to a recurrent cycle of debt accumulation and default.
Notes:
Description based on print version record.
Contributor:
Arora, Vivek B.
Other format:
Print Version:
ISBN:
1451968175:
9781451968170
ISSN:
1018-5941
Publisher Number:
10.5089/9781451968170.001
Access Restriction:
Restricted for use by site license.
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