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This paper explores the effects of official creditor subsidies to private lenders on loan pricing and credit availability. A two-period model is developed which includes a private lender, a sovereign borrower and an official creditor. The presence of credible sovereign collateral is shown to be...
Persistent link: https://www.econbiz.de/10014187054
According to the IMF, the current public debt makes up nearly 40 percent of the global debt, marking the highest share since the mid-1960s. Despite the vast research on alarming levels of sovereign default, the literature remains inconclusive. This paper investigates macroeconomic, financial,...
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cancel 100 percent of their outstanding debt claims on the world's poorest countries. Through the Multilateral Debt Relief …. Moreover, the World Bank, African Development Bank, and IMF shareholders approved a new debt sustainability framework to govern … raise serious questions about the finality of these actions. First, World Bank and AfDB lending disbursement volumes to …
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This paper studies the role of IMF-supported programs in mitigating the likelihood of subsequent sovereign defaults in borrowing countries. Using a panel of 106 developing countries from 1970 to 2016 and an entropy balancing methodology, we find that IMF-supported programs significantly reduce...
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