Front Matter
Author:
Mr. Ulrich Baumgartner
Search for other papers by Mr. Ulrich Baumgartner in
Current site
Google Scholar
Close
,
Mr. G. G. Johnson
Search for other papers by Mr. G. G. Johnson in
Current site
Google Scholar
Close
,
K. Burke Dillon https://isni.org/isni/0000000404811396 International Monetary Fund

Search for other papers by K. Burke Dillon in
Current site
Google Scholar
Close
,
R. C. Williams https://isni.org/isni/0000000404811396 International Monetary Fund

Search for other papers by R. C. Williams in
Current site
Google Scholar
Close
,
Mr. Peter M Keller
Search for other papers by Mr. Peter M Keller in
Current site
Google Scholar
Close
,
Maria Tyler
Search for other papers by Maria Tyler in
Current site
Google Scholar
Close
,
Bahram Nowzad
Search for other papers by Bahram Nowzad in
Current site
Google Scholar
Close
,
Mr. G. Russell Kincaid
Search for other papers by Mr. G. Russell Kincaid in
Current site
Google Scholar
Close
, and
Mr. Tomás Reichmann https://isni.org/isni/0000000404811396 International Monetary Fund

Search for other papers by Mr. Tomás Reichmann in
Current site
Google Scholar
Close

Abstract

Occasional Paper No. 3

Copyright

Occasional Paper No. 3

External Indebtedness of Developing Countries

By a Staff Team Headed by Bahram Nowzad and Richard C. Williams

and consisting of

Ulrich Baumgartner

K. Burke Dillon

G.G. Johnson

Peter M. Keller

G. Russell Kincaid

Thomas M. Reichmann

Maria Tyler

Exchange and Trade Relations Department

International Monetary Fund

Washington, D.C.

May 1981

Contents

  • Prefatory Note

  • I. Introduction

  • II. Dimensions of Developing Country Debt

    • Conceptual and statistical aspects

    • Overall developments, 1972–79

    • Non-oil developing countries

    • Changes in debt structure

    • Terms of debt

    • Prospects

    • Overview

  • III. Inflation and External Debt

    • Debt ratios

    • Burden of external debt, 1972–79

    • Inflation and the rate of amortization

  • IV. Survey of Recent Debt Problems

    • Main developments

    • Balance of payments background

  • V. Multilateral Debt Renegotiations

    • Basis of multilateral approach

    • Paris Club and similar frameworks

    • Summary of scope and terms of debt relief

    • Evolution of new guidelines

    • Role of the Fund

      • Background

      • Provisions of new guidelines

      • The Fund’s role in future debt rescheduling operations

  • VI. Debt Restructuring by Commercial Banks

    • Evolution of bank financing

    • Bank lending and economic management

    • Debt restructuring process

    • Financial impact of restructuring

    • Relationship to agreements with official creditors

    • Role of the Fund

    • Overview of some issues

  • APPENDICES

  • I. Developing Countries Covered in This Study

  • II. Inflation and Debt Service

  • III. Debt Ratios and Analysis of Debt Situations

    • General considerations

      • Descriptive function

      • Predictive function

      • Data considerations

    • Commonly used debt ratios

      • Debt service ratio

      • Ratio of amortization payments to disbursements

      • Ratio of interest payments to GDP or export earnings

      • Ratio of net resource transfer to GDP

      • Ratio of outstanding external debt to GDP or export earnings

      • Ratio of net external debt to GDP or export earnings

    • Debt capacity

  • LIST OF TABLES

  • Section

  • II. 1. Total External Debt of Developing Countries, End of 1979

    • 2. Medium-Term and Long-Term Debt of 94 Developing Countries, 1972–79

    • 3. Ratio of Developing Country Debt to Exports and Reserves, 1960 and 1970–79

    • 4. Debt of 87 Non-Oil Developing Countries, 1972–79

    • 5. Outstanding Debt of 94 Developing Countries by Income and Creditor Source, End of 1979

    • 6. Outstanding Debt and Debt Service of Developing Countries with Largest Outstanding Debt, 1975–79

    • 7. Average Terms of Debt Commitments for 94 Developing Countries, 1972–79

    • 8. External Debt of 87 Non-Oil Developing Countries, 1978–81

  • III. 9. Nominal and Real Public Debt of 87 Non-Oil Developing Countries, 1972–79

    • 10. Selected Indicators for Public Debt of 87 Non-Oil Developing Countries, 1972–79

  • IV. 11. Multilateral Debt Renegotiations, 1975–80

    • 12. Comparison of External Public Debt Indicators for a Group of Twelve Countries and for Other Non-Oil Developing Countries, 1972–79

    • 13. Comparisons of Economic Indicators for a Group of Twelve Countries and for Other Non-Oil Developing Countries, 1972–79

  • VI. 14. Medium-Term and Long-Term Bank Loan Commitments, 1971–78

    • 15. Net Bank Financing and Net Balance of Payments Flow Vis-à-Vis Banks, 1973–79

    • 16. Ratio of Net Flow Vis-à-Vis Banks to GDP and to Current Account Receipts, 1973–79

    • 17. Basic Components of Restructuring Agreements

    • 18. Impact of Restructuring Agreements on Net Flow Vis-à-Vis Banks During First Six Years

  • Appendices

  • II. 19. Effect of Inflation on Real Value of a Loan

  • LIST OF CHARTS

  • Section

  • III. 1. Public External Debt and Debt Service for 87 Non-Oil Developing Countries, 1972–79

  • Appendices

  • II. 2. Impact of Inflation on Real Burden of Debt Over Twenty Years

    • 3. Impact of Inflation on Real Burden of Debt Over Ten Years

    • 4. Impact of Inflation on Real Burden of Debt Over Five Years

  • III. 5. Model of External Debt Accumulation

Prefatory Note

This study was prepared in the Exchange and Trade Relations Department of the International Monetary Fund. Section VI was prepared in the International Capital Markets Division under the direction of Richard C. Williams; the remainder of the study was prepared in the External Finance Division under the direction of Bahram Nowzad. The members of the divisions who contributed were Ulrich Baumgartner, K. Burke Dillon, G. G. Johnson, Peter M. Keller, G. Russell Kincaid, Thomas M. Reichmann, and Maria Tyler. Technical assistance was provided by Dev Kar. The study was completed in December 1980 and does not reflect developments since that time.

Contributions and helpful comments were received from a number of colleagues. However, opinions expressed are those of the authors and do not necessarily represent the views of other staff members or of Executive Directors.

  • Collapse
  • Expand