Burden-sharing among official and private creditors

About

Countries

Data & Research

Learning

News

Projects & Operations

Publications

Topics

Home > Data & Research > Research > Author Profile > Report Details

Burden-sharing among official and private creditors, Volume 1

Author:	Demirguc-Kunt, Asli; Fernandez-Arias, Eduardo;	Collection Title:	Policy, Research working papers ; no. WPS 943. Debt and international finance
Date Stored:	2001/04/18	Document Date:	1992/08/31
Document Type:	Policy Research Working Paper	Language:	English
Major Sector:	(Historic)Economic Policy	Report Number:	WPS943
Sub Sectors:	Macro/Non-Trade	SubTopics:	Environmental Economics & Policies; International Terrorism & Counterterrorism; Economic Theory & Research; Banks & Banking Reform; Strategic Debt Management
Volume No:	1

Summary: The authors analyze how the burden of the debt crisis has been shared by various classes of creditors. Given the rising share of official debt in the total debt of developing countries, official creditors have a growing need to develop a burden-sharing indicator. This paper represents the very first step in this direction. To assess burden-sharing, the unobservable implied prices of official debt need to be estimated. The authors first analyze how, in a seniority-based corporate debt model, information on these implied prices can be recovered by looking at the differential impact of various stocks of debt on the market price. They analyze the validity and drawbacks of this model for the sovereign debt case and conclude that seniority sharing rules are probably not appropriate. They then show that implied prices are still identified under more general sharing rules, which allows them to relax the assumption and still be able to derive relevant inferences. A suitable multicreditor debt valuation model, dependent on the stock of private debt and the debt shares of various creditors, is then derived and estimated.


Official Documents Official, scanned versions of documents (may include signatures, etc.)
File Type		Description	File Size (mb)

	PDF 35 pages	Official version*	2.45 (approx.)
	Text	Text version**

* The official version is derived from scanning the final, paper copy of the document and is the official,
archived version including all signatures, charts, etc.

** The text version is the OCR text of the final scanned version and is not an accurate representation of the final text.
It is provided solely to benefit users with slow connectivity.

Permanent URL for this page: http://go.worldbank.org/KXX3B3ZVL0