IDEAS home Printed from https://ideas.repec.org/p/fip/fednrp/8903.html
   My bibliography  Save this paper

Voluntary conversions of LDC debt

Author

Listed:
  • Paul DiLeo
  • Eli M. Remolona

Abstract

We estimate that out of a total of $23 billion in LDC debt conversions in 1988, there was a reduction of $8.5 billion in foreign liabilities. We argue, however, that the need for debt reduction is not what has been driving these market-based schemes. We think the debt conversions stem largely from the advantages to creditor banks of restructuring their relative exposures given the fact that different banks have different perceptions of return on LDC debt. We show that even without incentive effects on the debtor country, creditor banks will gain from debt-equity swaps, while the debtor country may or may not gain. In contrast, the debtor country will gain from exit-bond exchanges, while the banks may or may not gain.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • Paul DiLeo & Eli M. Remolona, 1989. "Voluntary conversions of LDC debt," Research Paper 8903, Federal Reserve Bank of New York.
    • Handle: RePEc:fip:fednrp:8903
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Agarwal, Jamuna Prasad & Gubitz, Andrea & Nunnenkamp, Peter, 1991. "Foreign direct investment in developing countries: the case of Germany," Open Access Publications from Kiel Institute for the World Economy 423, Kiel Institute for the World Economy (IfW Kiel).
    2. 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,.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fip:fednrp:8903. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Gabriella Bucciarelli (email available below). General contact details of provider: https://edirc.repec.org/data/frbnyus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.