Enrique Cosio-PascalThe process has a high cost in administrative time of debtor country governments for each rescheduling, especially under the ‘short leash’ approach extensively used in the 1980s and 1990s which required numerous return visits to the Club to restructure each subsequent year or two of debt-servicing obligations. The point of the ‘short leash’ was (and is) political: to add to the pressure on the debtor government to make the policy changes that the IFIs demand as a condition for disbursement of the various tranches of their loans.
Remarks by Martín Guzmán at 12th Edition of the Paris Forum: Key findings and conclusions of the Jubilee Report
Dear members of the Paris Club Secretariat, Thank you for the invitation to present some of the key findings and conclusions of the Jubilee Report, commissioned by Pope Francis and prepared by a Commission of
Martín Guzmán
Joseph Stiglitz