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Serial sovereign defaults and debt restructurings /
Emerging countries that have defaulted on their debt repayment obligations in the past are more likely to default again in the future than are non-defaulters even with the same external debt-to-GDP ratio. These countries actually have repeated defaults or restructurings in short periods. This paper...
| Clasificación: | Libro Electrónico |
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| Autor principal: | |
| Formato: | Electrónico eBook |
| Idioma: | Inglés |
| Publicado: |
Tustin, CA :
Xist Publishing,
2015.
[Washington, D.C.] : International Monetary Fund, 2016. |
| Colección: | IMF working paper ;
WP/16/66. |
| Temas: | |
| Acceso en línea: | Texto completo |
| Sumario: | Emerging countries that have defaulted on their debt repayment obligations in the past are more likely to default again in the future than are non-defaulters even with the same external debt-to-GDP ratio. These countries actually have repeated defaults or restructurings in short periods. This paper explains these stylized facts within a dynamic stochastic general equilibrium framework by explicitly modeling renegotiations between a defaulting country and its creditors. The quantitative analysis of the model reveals that the equilibrium probability of default for a given debt-to-GDP level is weakly increasing with the number of past defaults. The model also accords with an additional fact: lower recovery rates (high NPV haircuts) are associated with increases in spreads at renegotiation.--Abstract. |
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| Notas: | "March 2016." "Research Department." "WP/16/65" on page [one] refers to: Natural disasters and food crises in low-income countries. |
| Descripción Física: | 1 online resource (45 pages) : illustrations. |
| Bibliografía: | Includes bibliographical references (pages 41-44). |
| ISBN: | 9781475521818 1475521812 1513596640 9781513596648 1475561954 9781475561951 |
| ISSN: | 1018-5941 1018-5941 ; |