Debt and Global Finance – Page 2 – Initiative for Policy Dialogue

Sovereign Debt

Dealing Deftly with Sovereign Debt Difficulties

This paper looks at the international process for overcoming sovereign debt crises in developing and transition economies. It first characterizes the nature of sovereign debt crises, and how their resolution has fallen under the domain of global policy. It then highlights the complexity of determining how much debt a post-crisis country should end up with and how the major players interact in determining the actual workout in typical cases. It concludes by considering certain proposals for improving the chances that debt workouts will be effective, speedy and fair.

By Aleksey (Adminstrator), 2 yearsAugust 27, 2024 ago

Economics & Policy

The Practice of Sovereign Debt Sustainability Analysis

Debt Sustainability Analyses (DSAs) have major implications for debt negotiations. The outcomes of these negotiations have distributional consequences between the debtor and its creditors on the one hand, and amongst creditors on the other hand.

By Aleksey (Adminstrator), 2 yearsAugust 26, 2024 ago

Financial Institutions

Debt Sustainability

This paper assesses the various definitions and mechanisms used to achieve debt sustainability. Section 2 examines the basis for the definition of sustainability currently used by the international community to determine debt relief levels and monitor long-term sustainability.

By Aleksey (Adminstrator), 2 yearsAugust 21, 2024 ago

Reasons for Limited Sovereign Risk Management and How to Improve It?

This paper takes stock of the issues involved in sovereign risk management, focusing on developing countries. It identifies the needs for risk management at the country level by briefly reviewing the various shocks developing countries are exposed to.

By Aleksey (Adminstrator), 2 yearsAugust 21, 2024 ago

Economics & Policy

The 1980s Crisis in Syndicated Bank Lending to Sovereigns and the Sequence of Mechanisms to Fix It

This paper looks back to the 1980s and at how the international community addressed the debt crises of countries that were primarily indebted to international commercial banks. It describes how the initial policy, which emphasized concerted refinancing of obligations as they fell due, was superseded in 1985 by the ‘Baker Plan’, which sought multi-year relief packages and focused on fifteen countries in which the major banks had large exposures.

By Aleksey (Adminstrator), 2 yearsAugust 21, 2024 ago

Financial Institutions

Is Domestic Debt the Answer to Debt Crises?

This paper emphasizes that it matters whether domestic debt means debt issued in local currency (at home or abroad) or to local investors (in domestic or foreign currency) or governed by local law (also in domestic or foreign currency).

By Aleksey (Adminstrator), 2 yearsAugust 21, 2024 ago

Business & Society

Human Development Advocacy for Debt Relief, Aid, and Governance

This chapter looks at some of the policy positions that underpinned the Jubilee 2000 campaign. While the arguments of debt campaigners were, at the time, dismissed as the politics of naïve idealists, they soon became part of the new realism in official debt policy. How did this shift come about? And, going forward, what are the key features that can usefully inform official aid and debt policy frameworks?

By Aleksey (Adminstrator), 2 yearsAugust 21, 2024 ago

Financial Policy

The Argentinian Debt

This paper avers that the key to understanding the leadup to the Argentinian debt crisis was the particular anti-inflation and growth strategy—followed first in 1979–81 and in a more radical way in 1991–2001—of fixing the exchange rate, liberalizing the economy, and fully opening it to international financial flows.

By Aleksey (Adminstrator), 2 yearsAugust 21, 2024 ago

Globalization

Why the Code of Conduct for Resolving Sovereign Debt Crises Falls Short

In this paper the author situates the “Principles for Stable Capital Flows and Fair Debt Restructuring in Emerging Markets” in the context of international policy developments for treating sovereign debt crises in the late 1990s and early years of the present decade.

By Aleksey (Adminstrator), 2 yearsAugust 21, 2024 ago

Financial Policy

Fiscal Policy and Workouts from Debt Crises

Much of the discussion of the risks of sovereign debt crises has focused on the issue of currency risk. This has led to the recommendation that countries should borrow in their local currency. Yet in the drive to develop local markets, many countries are running up domestic debt burdens.

By Aleksey (Adminstrator), 2 yearsAugust 21, 2024 ago