I study long-term lending and borrowing in the absence of perfect enforceability and when lenders as well as borrowers are capital constrained. Borrowers receive random investment opportunities and need external financing. Lenders can commit to contractual agreements whereas borrowers can renege...

This paper is focused on the financial situation of enterprises introducing safeguard procedure (in other words moratorium) in the Czech Republic. The paper's aim is to show if the enterprises asking for the safeguard procedure do have financial conditions for recovering and maintaining the...