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Debt: New treatment for the chronic but repentant

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  • Mike Faber

Abstract

The article considers the position of certain developing countries which have accumulated major arrears to the international financial institutions (IFI) but which have also indicated their willingness to undertake programmes of stabilisation and structural adjustment. The first part of the article deals with the problem of how such chronic debtors may be brought back into the fold so as to qualify for renewed IFI financing. The second part of the article identifies four policy instruments likely to form part of any negotiated adjustment programme, and considers certain issues which may arise in determining how those instruments may best be designed and applied.

Suggested Citation

  • Mike Faber, 1990. "Debt: New treatment for the chronic but repentant," Journal of International Development, John Wiley & Sons, Ltd., vol. 2(2), pages 232-242, April.
    • Handle: RePEc:wly:jintdv:v:2:y:1990:i:2:p:232-242
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    File URL: http://hdl.handle.net/10.1002/jid.3380020204
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