Is the discount on the secondary market a case for LDC debt relief? (English)

In 1988, the prices on the secondary market of LDC debt averaged 50 cents per dollar of face value. From the observation of such discount, this paper goes one step further and argues that the debt should be written down in order to account for the discrepancy between the face and market value of the debt. The paper is structured as follows. Section 1 spells out the model, section 2 calculates the socially efficient and the post-default growth rates...
See More

DETAILS

See More

DOWNLOADS

COMPLETE REPORT

Official version of document (may contain signatures, etc)

  • Official PDF

  • TXT*

  • Total Downloads** : 736

  • Download Stats

  • *The text version is uncorrected OCR text and is included solely to benefit users with slow connectivity.

Citation

Cohen,Daniel.

Is the discount on the secondary market a case for LDC debt relief? (English). Policy, Planning and Research Department working papers ; no. WPS 132 Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/619051468764709847

SUBSCRIBE TO EMAIL ALERTS

This document is being processed or is not available.