Preferred and Non-Preferred Creditors (English)

International financial institutions (IFIs) generally enjoy preferred creditors treatment (PCT). Although PCT rarely appears in legal contracts, when sovereigns restructure bilateral or commercial debts they normally pay IFIs in full. This paper presents a model where a creditor, such as an IFI, that can commit to lend limited amounts at the risk-free rate and can refrain from lending into arrears is always repaid and adds value. The analysis suggests...

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Author

Cordella,Tito;

Powell,Andrew P.;
Document Date
2019/07/22
Document Type
Policy Research Working Paper
Report Number
WPS8941
Volume No
1
Total Volume(s)
1
Country
World,
Region
Other,
Disclosure Date
2019/07/22
Disclosure Status
Disclosed
Doc Name
Preferred and Non-Preferred Creditors
Keywords
market lending

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Citation

Cordella,Tito; Powell,Andrew P..

Preferred and Non-Preferred Creditors (English). Policy Research working paper|no. WPS 8941 Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/578451563797490303

Preferred and Non-Preferred Creditors (English)

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