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Abstract

This paper reports the growing number of low-income countries that are making efforts to resolve their debt problems, often aided by the resources of the debt reduction facility for countries of the International Development Association (IDA). Progress for most, however, remains slow. With the backing of IDA resources and assistance from official bilateral sources, debt buy-backs have been concluded by Bolivia, Guyana, Mozambique, Niger, Sao Tome and Principe, Uganda, and Zambia. Preliminary discussions on similar operations are under way with several other countries. Although most of the major baric debt cases have been resolved, attention still needs to be focused on the problems of low-income countries. In many of these countries, the process of debt restructuring has been delayed owing to economic and political difficulties. To maintain market access on reasonable terms, countries need consistently to implement strong macroeconomic and structural policy programs. Maintenance of such programs is likely to be particularly important in the period ahead, given the high degree of uncertainty with regard to interest rate movements in the industrial countries.

Bibliography

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Private Market Financing for Developing Countries

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by a Staff Team from the IMF’s Policy Development and Review Department led by Michael Kuhn

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1994. ISBN 1-55775-378-4. Stock #WEO-1394.

Officially Supported Export Credits: Recent Developments and Prospects

by Michael G. Kuhn, Balazs Horvath, Christopher J. Jarvis

This study examines export credit and cover policies in the ten major industrial countries.

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  • Campbell, H., “Portfolio Enhancement Using Emerging Markets as Conditioning Information,” paper presented at World Bank Symposium on Portfolio Investment in Developing Countries, Washington, D.C., September 1993.

    • Search Google Scholar
    • Export Citation
  • Campbell, J.Y., and A.S. Kyle,Smart Money, Noise Trading, and Stock Price Behavior,Review of Economic Studies, Vol. 60 (January 1993), pp. 134.

    • Search Google Scholar
    • Export Citation
  • Cardoso, E., and R. Dornbusch,Foreign Private Capital Flows” in Handbook of Development Economics, Vol. 2, ed. by Hollis Chenery and T.N. Srinivasan (Amsterdam; New York: North-Holland, 1988).

    • Search Google Scholar
    • Export Citation
  • Claessens, S,Alternative Forms of External Finance: A Survey,World Bank Research Observer, Vol. 8 (January 1993), pp. 91117.

  • Claessens, S, M. Dooley, and A. Warner,Portfolio Capital Flows: Hot or Cool?World Bank Discussion Paper, August 27, 1993.

  • Collyns, Charles, and others, Private Market Financing for Developing Countries (Washington: International Monetary Fund, 1993, 1992, and 1991).

    • Search Google Scholar
    • Export Citation
  • Dooley, Michael,An Analysis of the Debt Crisis,IMF Working Paper, WP/86/14 (Washington: International Monetary Fund, 1986).

  • Edwards, Sebastian,Capital Flows, Foreign Direct Investment, and Debt-Equity Swaps in Developing Countries,National Bureau of Economic Research Working Paper, No. 3497 (October 1990).

    • Search Google Scholar
    • Export Citation
  • Goldsbrough, David J.,Investment Trends and Prospects: The Link with Bank Lending” in Investing in Development: New Roles for Private Capital, ed. by Theodore T. Moran and others (New Brunswick, Connecticut: Transaction Books, 1986)

    • Search Google Scholar
    • Export Citation
  • Goldstein, Morris, and M. Mussa,The Integration of World Capital Markets,IMF Working Paper, WP/93/95 (Washington: International Monetary Fund, 1993).

    • Search Google Scholar
    • Export Citation
  • Goldstein, Morris, and others, International Capital Markets Part II, Systemic Issues in International Finance (Washington: International Monetary Fund, August 1993).

    • Search Google Scholar
    • Export Citation
  • Goldstein, Morris, and others, International Capital Markets: Developments, Prospects, and Key Policy Issues (Washington: International Monetary Fund, 1994).

    • Search Google Scholar
    • Export Citation
  • Graham, Edward M., and Paul R. Krugman, “The Surge in Foreign Direct Investment in the 1980s” in Foreign Direct Investment, ed. by Kenneth Froot (Chicago: University of Chicago Press, 1993).

    • Search Google Scholar
    • Export Citation
  • Grossman, S.J., and J.E. Stiglitz,On the Impossibility of Informationally Efficient Markets,American Economic Review, Vol. 70 (1980).

    • Search Google Scholar
    • Export Citation
  • International Finance Corporation (1994a), Emerging Markets Factbook (Washington: IFC, 1994).

  • International Finance Corporation (1994b), Quarterly Review of Emerging Markets, (First Quarter 1994).

  • International Organization of Securities Commissions (IOSCO), Report of the Development Committee on Internationalization (Montreal: IOSCO, October 1993).

    • Search Google Scholar
    • Export Citation
  • Kuhn, Michael G., and others, Official Financing for Developing Countries (Washington: International Monetary Fund, April 1994).

  • Kyle, Albert S.,Continuous Auctions and Insider Trading,Econometrica, Vol. 53 (November 1985), pp. 131535.

  • Lizondo, Saul,Foreign Direct Investment,” in Determinants and Systemic Consequences of International Capital Flows, IMF Occasional Paper, No. 77 (Washington: International Monetary Fund, 1991), pp. 6882.

    • Search Google Scholar
    • Export Citation
  • U.S. Department of Commerce, Survey of Current Business, Bureau of Economic Analysis (Washington, various issues).

  • U.S. Treasury Department, Treasury Bulletin (Washington, various issues.)