and borrowers ample reason to care whether nonperforming debts are restructured. One implication of the way in which debt …What difference does it make, and for whom, whether the nonperforming debts of emerging market borrowers are … restructured? This paper begins by positing a set of counterfactual conditions under which restructuring would not matter, and then …

bonds. Our main finding is that when reduction of debt is optimal, the sovereign should remain passive in the long-term bond … these bonds. The only active margin is the short-term bond market, which involves partial roll over of such debt. Any active … deleveraging process. We also show that there exist a set of Pareto improving debt restructurings in which maturities are shortened …

debtors ever repay their debts? (2) What burdens, in the form of distortions and inefficiencies, does sovereign debt impose … economy. Answers to the third question include measures by creditors, by debtors, and by public institutions to reduce debt …We review the literature on sovereign debt. We organize our survey around three central questions: (1) Why do sovereign …

creditors. This paper emphasizes the crucial distinction between marginal and average sovereign debt. This distinction provides …The most widely proposed LDC debt plans are flawed by their failure to recognize the fundamental differences between … corporate and sovereign debt. Consequently, many plans intended to help highly-indebted countries mainly aid their foreign …

repayment as well as future debt issuances. Our main finding is that under a wide range of conditions the sovereign should, as …We study the interactions between sovereign debt default and maturity choice in a setting with limited commitment for … long as default is not preferable, remain passive in long-term bond markets, making payments and retiring long-term bonds …

. The roughly $2 billion of annual debt payments to be relieved under MDRI amounts to roughly 0.01 percent of the GDP of the …The G-8 Multilateral Debt Relief Initiative (MDRI) is the next step of the Highly Indebted Poor Countries Initiative … leaders on at least three separate occasions (1970, 1992, 2002). Second, the existence of debt overhang is a necessary …

Over 60% of US households with credit cards are currently borrowing -- i.e., paying interest -- on those cards. We …

We introduce a novel survey measure of attitude toward debt. Matching our survey results with panel data on Swedish … household balance sheets from registry data, we show that our debt attitude measure helps explain individual variation in … indebtedness as well as debt build-up and consumption behavior in the period 2004–2007. As an explanatory variable, debt attitude …

What determines the sustainability of sovereign debt? We develop a model where myopic governments seek popularity but … can nevertheless commit credibly to service external debt. They do not default when debt is low because they would lose … access to debt markets and be forced to reduce spending; they do not default as debt builds up, and net new borrowing becomes …

appear to benefit from the ability to avail themselves of an orderly restructuring process. In contrast, less credit … restructuring are offset by the moral hazard and default risk associated with the presence of renegotiation-friendly loan provisions …