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During tumultuous fiscal years of the past few decades, the World Bank, acting in its capacity as lender of last resort …, granted unsecured loans to debt-ridden sovereigns. Instead of taking a lien over the state's assets, the World Bank protected … amounts payable by the borrowing state. In short, should such a lien be granted, the World Bank shares in the amounts paid out …
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This paper analyzes influences on the credit standing of Multilateral Development Banks (MDBs), specifically the quality, diversification and single name concentration of their portfolios, and on the market practice known as Preferred Creditor Status (PCS), whereby sovereigns that default on...
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institutions established after the Second World War, NDB still faces important challenges to meet those goals. …
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