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Simple Analytics: Debt-Equity Swaps and Debt forgiveness
Author:
International Monetary Fund
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Series:
IMF Working Papers
Volume/Issue:
Volume 1988: Issue 030
Language:
English
Publication Date:
01 Jan 1988
DOI:
https://doi.org/10.5089/9781451980165.001
ISBN:
9781451980165
ISSN:
1018-5941
Pages:
42
Keywords:
WP; debt forgiveness; demand price; income effect; rate of return; debtor country; equity holding; marginal utility; productivity shock; Debt conversion; Stocks; Consumption; Income; Debt service payments; Global
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IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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This paper is concerned with debt-equity swaps in which foreign residents are a party to the exchange (i.e., it does not deal with flight capital), and with debt forgiveness. The seemingly unrelated issues of debt-equity swaps and debt forgiveness are jointly treated in this study, because debt forgiveness is in fact a special case of debt-equity swaps. Namely, it is a swap in which a positive amount of debt is exchanged for zero equity. For this reason these two problems have many common features.
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Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund