000			02153nam a2200289 a 4500
003			arcduce
005			20120731113348.0
008			100211s1991 dcu||||| |||| 00| 0 eng d
040			_aarcduce
082			_a336.3435
090			_c16700 _d16700
100			_aCohen, Daniel
245			_aA valuation formula for LDC debt _c/ Daniel Cohen
260			_bWorld Bank _aWashington, D.C. _c1991
300			_a20 p. : _bil.
490			_aPolicy, research, and external affairs working papers _vno. WPS 763
504			_aIncluye bibliografía
505			_a1. Introduction -- 2. Motivation and theoretical background -- 3. A valuation formula for LDC debt -- 4. The value of a write-off -- 5. The value of guaranteeing the debt -- 6. Some perspectives on the mexican deal -- Appendix -- Bibliography.
520			_aA large gap may lie between the amount of debt relief that is nominally granted to a debtor and that which is actually given up by the creditors. To help put that gap in perspective, the author proposes a valuation formula that provides: (i) the price at which a buy-back of the debt, on the secondary market, is advantageous to the country; (ii) the value to creditors of having the flows of payment guaranteed against factors that hinder a country in servicing its debt; and (iii) the degree of tradeoff between growth of payments and levels of payments. The author argues that it is not good business for a country to announce its intention to buy back debt, because doing so immediately raises the price. The value of guarantees, the author argues, cannot exceed 25 percent of the market price of the debt. Typically they ' re worth only about 10 percent. As for the degree of tradeoff, the author ' s formula finds that 1 percent additional growth rate is worth a 15 percent increase in the flows of payments. An assessment of the Mexican debt-relief agreement reached in 1990 is also offered.
650			_aDEUDA EXTERNA
650			_aMODELOS ECONOMETRICOS
650			_aREBAJA DE LA DEUDA
650			_aPAISES EN DESARROLLO
653			_aTERCER MUNDO
710			_aBanco Mundial
942			_cDOCU _jF 336.3435 C 20499
999			_c16671 _d16671