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Adoption of an IMF Programme and Debt Rescheduling. An empirical test of their relationship

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  • Marchesi, Silvia

Abstract

The existence of an empirical relationship between the adoption of an IMF programme and the concession of a debt rescheduling by commercial and o¢cial creditors is tested using a bivariate probit model. If countries who have arrangements with the IMF are more likely than others to obtain a rescheduling of their external debt we could conclude that the adoption of an IMF programme could work as a sort of signal of a country’s “good willingness”, which is thus rewarded with the debt relief. The results con…rm the existence of a signi…cant e¤ect of the adoption of an IMF programme on the subsequent concession of a debt rescheduling by creditors.

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  • Marchesi, Silvia, 1999. "Adoption of an IMF Programme and Debt Rescheduling. An empirical test of their relationship," Economic Research Papers 269262, University of Warwick - Department of Economics.
    • Handle: RePEc:ags:uwarer:269262
    DOI: 10.22004/ag.econ.269262
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