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11 – 20 of over 8000The total of foreign debt of less developed countries (LDCs) is sogreat that only a modest part of the interest and principal due is everlikely to be paid. The dilemma of the…
Abstract
The total of foreign debt of less developed countries (LDCs) is so great that only a modest part of the interest and principal due is ever likely to be paid. The dilemma of the situation is that further capital inflow is necessary for growth and poverty relief, but is unlikely to be granted because of non‐servicing of existing debt and governmental instability within the LDCs. Christian commentary on LDC debt is so often simplistic, condemning lenders and urging forgiveness of principal due and interest, write‐downs of loans and lower interest rates. In addition to the moral and humanitarian issues raised, due weight should be given to financial and economic analysis. A statement issued by the Political Commission for Justice and Peace provides a model of Christian comment on the eventual solution of the debt crisis, outlining ethical principles concerning the assistance wealthier countries should extend to LDCs, disclaiming technical recommendations as the Church′s role, and calling upon industrialised countries to draw up fresh plans for co‐ordinated assistance for LDCs, while stressing that the latter should put their houses in order.
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Debt‐equity swaps represent a new market‐based mechanism, by which debtor countries and creditor banks can defuse the acute problems associated with the international debt crisis…
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Debt‐equity swaps represent a new market‐based mechanism, by which debtor countries and creditor banks can defuse the acute problems associated with the international debt crisis. This paper describes, analyzes and evaluates debt‐equity swaps from the standpoint of the debtor country. It also discusses some of the possible advantages and disadvantages for LDCs that might contemplate the use of such swaps. The paper demonstrates how a successful debt‐equity swap program could play an important role in alleviating the IDCs' debt problem as well as contributing to their future economic growth.
The social protests on the streets of indebted sovereigns in crises across the Eurozone have made debt restructuring an imperative. Further delay in achieving this expeditiously…
Abstract
The social protests on the streets of indebted sovereigns in crises across the Eurozone have made debt restructuring an imperative. Further delay in achieving this expeditiously and equitably significantly exacerbates the social costs of crises from which current and future generations will struggle to recover. This article examines the feasibility of the drastic and widespread debt restructuring needed to resolve the problem in the face of existing private law sanctions that protect individual creditor rights. It relies on an analysis of US policy in the transition to a securitized market and of key sovereign debt cases to reveal the historical contingency of private law protections. It concludes by showing that the effectiveness of private law protections have always been constrained by the overriding imperative to achieve debt sustainability with negotiated and consensual workouts. This can be achieved in the Eurozone with statutory constraints on enforcement action pending the settlement of debt workouts as suggested in a recent proposal.
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Bipin Shah and Faud A. Abdullah
This study examines the pricing of international bank loans to LDCs as a group to ascertain if non‐price variables are dominant factors in granting these loans. Specifically, it…
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This study examines the pricing of international bank loans to LDCs as a group to ascertain if non‐price variables are dominant factors in granting these loans. Specifically, it attempts to test the hypothesis that banks, in extending Eurocredits to LDCs, have used credit rationing, rather than pricing, maturity or other variables, to respond to the perceived risks involved in such lending. Results of empirical tests for the period 1977–90 confirm that, in response to significantly higher perceived risks, lenders simply constrained the flow of credit to this group of countries.
Index by subjects, compiled by K.G.B. Bakewell covering the following journals: Facilities Volumes 8‐17; Journal of Property Investment & Finance Volumes 8‐17; Property Management…
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Index by subjects, compiled by K.G.B. Bakewell covering the following journals: Facilities Volumes 8‐17; Journal of Property Investment & Finance Volumes 8‐17; Property Management Volumes 8‐17; Structural Survey Volumes 8‐17.
Compiled by K.G.B. Bakewell covering the following journals published by MCB University Press: Facilities Volumes 8‐17; Journal of Property Investment & Finance Volumes 8‐17;…
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Compiled by K.G.B. Bakewell covering the following journals published by MCB University Press: Facilities Volumes 8‐17; Journal of Property Investment & Finance Volumes 8‐17; Property Management Volumes 8‐17; Structural Survey Volumes 8‐17.
Compiled by K.G.B. Bakewell covering the following journals published by MCB University Press: Facilities Volumes 8‐17; Journal of Property Investment & Finance Volumes 8‐17;…
Abstract
Compiled by K.G.B. Bakewell covering the following journals published by MCB University Press: Facilities Volumes 8‐17; Journal of Property Investment & Finance Volumes 8‐17; Property Management Volumes 8‐17; Structural Survey Volumes 8‐17.
Compiled by K.G.B. Bakewell covering the following journals published by MCB University Press: Facilities Volumes 8‐17; Journal of Property Investment & Finance Volumes 8‐17;…
Abstract
Compiled by K.G.B. Bakewell covering the following journals published by MCB University Press: Facilities Volumes 8‐17; Journal of Property Investment & Finance Volumes 8‐17; Property Management Volumes 8‐17; Structural Survey Volumes 8‐17.
The People's Republic of China (PRC) is the world's largest official creditor nation with its outstanding debt claims on the rest of the world totaling an estimated US$5.5…
Abstract
The People's Republic of China (PRC) is the world's largest official creditor nation with its outstanding debt claims on the rest of the world totaling an estimated US$5.5 trillion in 2019 or more than 6% of global GDP. However, given Beijing’s very limited transparency in its disclosures when it comes to its external lending (and now its alleged culpability in the spread of the coronavirus) the accusation that the PRC has for years engaged in “debt-trap diplomacy” has come under renewed scrutiny. Specifically, the charge is that the Chinese government, which is the world's leading creditor lending via its multibillion dollar “Belt and Road Initiative” as well as various state-owned and controlled entities, lures developing countries, in particular, low-income countries, with easy money to fund often economically unviable projects. This is because China's ultimate goal is to get access to the borrowers' local markets and natural resources and indirectly controlling or outright seizing assets and resources, including extracting economic and political concessions when these countries fail to service their loans – which is often given at market or above-market interest rates and carry shorter maturities, thereby requiring regular refinancing. This paper reviews this claim and concludes that it seems exaggerated.
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This chapter analyses the causes and effects of the financial crisis that commenced in 2008, and it examines the dramatic government rescues and reforms. The outcomes of this, the…
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This chapter analyses the causes and effects of the financial crisis that commenced in 2008, and it examines the dramatic government rescues and reforms. The outcomes of this, the most severe collapse to befall the United States and the global economy for three-quarters of a century, are still unfolding. Banks, homeowners and industries stood to benefit from government intervention, particularly the huge infusion of taxpayer funds, but their future is uncertain. Instead of extending vital credit, banks simply kept the capital to cover other firm needs (including bonuses for executives). Industry in the prevailing slack economy was not actively seeking investment opportunities and credit expansion. The property and job markets languished behind securities market recovery. It all has been disheartening and scary – rage against those in charge fuelled gloom and cynicism. Immense private debt was a precursor, but public debt is the legacy we must resolve in the future.
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