Franklin

Considerations in the Choice of the Appropriate Discount Rate for Evaluating Sovereign Debt Restructurings [electronic resource] Kozack, Julie.

Author/Creator:
Kozack, Julie.
Publication:
Washington, D.C. : International Monetary Fund, 2005.
Series:
IMF eLibrary
IMF Policy Discussion Papers; Policy Discussion Paper No. 05/09.
IMF Policy Discussion Papers; Policy Discussion Paper No. 05/09
Format/Description:
Government document
Book
1 online resource (29 p.)
Local subjects:
Amount of debt.
Bond.
Bond indices.
Bond rate.
Bond spreads.
Bonds.
Cash flow.
Cash flow calculations.
Cash flows.
Concessional debt.
Debt burden.
Debt exchange.
Debt obligations.
Debt overhang.
Debt problem.
Debt problems.
Debt relief.
Debt restructuring.
Debt restructuring operation.
Debt service.
Debt stock.
Debt sustainability.
Debt-service obligations.
Discount rate.
Discount rates.
Discounted cash flow.
Discounting.
Emerging market bond.
Eurobonds.
External debt.
External indebtedness.
Financial institutions.
Financial markets.
Global liquidity.
Government debt.
Internal rate of return.
International debt.
International finance.
International Financial Markets.
International lending.
International Lending and Debt Problems.
Market bond.
Market debt.
Market discount.
Market discount rate.
Net present value.
Net present value of debt.
Nominal interest rate.
Old bonds.
Present value.
Repayment capacity.
Reserve holdings.
Sovereign debt.
Sovereign debt restructuring.
Sovereign debtor.
Treasury bonds.
Ukraine.
Uruguay.
Summary:
Assessments regarding the effectiveness of sovereign debt restructurings are often summarized by comparisons of the net present value of debt service before and after the restructuring. These calculations are inherently sensitive to the choice of discount rate. This paper explores issues that arise in selecting discount rates when evaluating sovereign debt restructurings. It suggests using a range of discount rates and centering the analysis around the internal rate of return to assess whether the debt restructuring has generated net present value savings or costs to the debtor.
Notes:
Description based on print version record.
Contributor:
Kozack, Julie.
Other format:
Print Version:
ISBN:
1451975848:
9781451975840
ISSN:
1934-7456
Publisher Number:
10.5089/9781451975840.003
Access Restriction:
Restricted for use by site license.
Location Notes Your Loan Policy
Description Status Barcode Your Loan Policy