A Note on Burden Sharing among Creditors
AbstractThis paper presents a framework for evaluating the relative contributions of different creditors in cases where only partial payments can be made by the debtor country. A methodology is developed to calculate partial payments--or, alternatively put, to determine residual financing. By focusing on the relative seniority of creditors and expectations of the debtor's ability to repay, alternative sharing rules are quantified. The measure is based on the expected present value of payments. Creditors earning a below-market rate of return suffer a burden; creditors earning the same rate of return are said to share the burden equally.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoArticle provided by Palgrave Macmillan in its journal Staff Papers - International Monetary Fund.
Volume (Year): 40 (1993)
Issue (Month): 1 (March)
Contact details of provider:
Web page: http://www.palgrave-journals.com/
Postal: Palgrave Macmillan Journals, Subscription Department, Houndmills, Basingstoke, Hampshire RG21 6XS, UK
Other versions of this item:
- F34 - International Economics - - International Finance - - - International Lending and Debt Problems
You can help add them by filling out this form.
CitEc Project, subscribe to its RSS feed for this item.
- Dooley, Michael & Fernandez-Arias, Eduardo & Kletzer, Kenneth & DEC, 1994.
"Is the debt crisis history? Recent private capital inflows to developing countries,"
Policy Research Working Paper Series
1327, The World Bank.
- Dooley, Michael & Fernandez-Arias, Eduardo & Kletzer, Kenneth, 1996. "Is the Debt Crisis History? Recent Private Capital Inflows to Developing Countries," World Bank Economic Review, World Bank Group, vol. 10(1), pages 27-50, January.
- Klingen, Christoph & Weder di Mauro, Beatrice & Zettelmeyer, Jeronimo, 2004.
"How Private Creditors Fared in Emerging Debt Markets, 1970-2000,"
CEPR Discussion Papers
4374, C.E.P.R. Discussion Papers.
- Jeromin Zettelmeyer & Beatrice Weder & Christoph Klingen, 2004. "How Private Creditors Fared in Emerging Debt Markets, 1970-2000," IMF Working Papers 04/13, International Monetary Fund.
- Bowe, M. & Dean, J.W., 1997. "Has the Market Solved the Sovereign-Debt Crisis?," Princeton Studies in International Economics 83, International Economics Section, Departement of Economics Princeton University,.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Elizabeth Gale).
If references are entirely missing, you can add them using this form.