Official lenders provide financial assistance to countries that face sovereign debt crisis. The availability of … accumulate higher debt levels. To assess the overall effect of financial assistance on the probability of default we construct a … that occur due to self-fulfilling runs by private investors. However, at the same time it raises average debt levels …

This paper tests the effect of sovereign debt structure on default likelihood. Sovereign debt structure is identified … likelihood of default. The results provide evidence that bilateral loans, short term debt, and bank loans increase the likelihood … of default. Results also show that foreign currency denominated debt reduces default likelihood. The study provides …

Over the past 40 years, the International Monetary Fund (IMF) has played a central role in the sovereign debt … restructuring process. If the COVID-19 pandemic leads to a significant wave of sovereign debt distress, this role will be closely … stage of the sovereign debt restructuring process. It also identifies a number of issues that the IMF will likely have to …

This book challenges the prevalent assumption that sovereign debt must be repaid — even after a major regime change … historical constancy all fall away upon closer inspection. It points out that practices of sovereign debt and reputation are … cannot simply be assumed, and in fact different creditors may view — and historically have viewed — the same debt repudiation …

can refrain from lending into arrears is always repaid and adds value. The analysis suggests that IFIs and market lenders … states. This suggests such lenders should not differentiate lending interest rates according to risk and should not … participate in the restructuring of commercial debt. …

In this paper we broaden the standard debt sustainability framework used in the IMF-WB Heavily Indebted Poor Countries … (HIPC) Initiative to include the analysis of domestic public debt and other feedback effects into the usual debt … public debt sustainability in a simple accounting framework that includes exchange rate effects. We use new data on domestic …

sovereign’s debt restructuring process is likely to be conflict ridden, inefficient and to have a high probability of resulting … a broader range of creditors. One consequence is that sovereign debt restructurings (SODRs), are difficult, often …

At present, the enhanced HIPC initiative and the Gleneagles Proposal for debt write-downs by the G8 are the main … naïve to believe that the Millennium Development Goals can be achieved if the current debt relief mechanisms fail to address … such problem. In this paper, we develop a model of sovereign debt write-downs, where governance problems reflect domestic …

This study has assessed the role of existing policies in determining the state of debt sustainability for the Pakistan … index has been constructed to formulate a debt-policy interactive term that implies whether or not existing macroeconomic … policies contribute in making external debt sustainable in Pakistan. Second, this study has gauged the potential sustainable …