000			01786nam a2200313 a 4500
082			_aF 336.3435 D 16082
090			_c4945 _d4945
100			_aDetragiache, Enrica
245			_aSensible debt buybacks for highly indebted countries
260			_bWorld Bank
260			_aWashington, D.C.
260			_cMarch 1991
300			_a32 p.
490			_aWorking paper series _vn. 621
500			_aCopias: F 20705
504			_aIncluye bibliografía
505			_aCopias: F 20705
505			_a1. Introduction -- 2. The model -- 3. Reserve accumulation -- 4. Investment in physical capital -- 5. Negotiated debt buybacks -- 6. More on the lender side of the market -- 7. Conclusions -- References.
520			_aPrevious studies indicate that debt buybacks at market prices benefit lenders the most because the lack of a seniority structure in sovereign lending distorts secondary market prices upward. The author examines whether welfare-improving buybacks would arise at the " fair " price. If so, policy intervention is needed to remove the distortion. In a model of intertemporal consumption smoothing, buybacks at the fair price are desirable if the country experiences unusually heavy export earnings and if large reserve holdings tend to increase transfers to creditors in default states. Concerted agreements in which debt repurchases are linked to cuts in interest rates or new money requirements can make buybacks at the fair price viable, while preventing the free-rider problem among lenders.
650			_aDEUDA EXTERNA
650			_aMODELOS ECONOMICOS
650			_aGESTION DE LA DEUDA
650			_aBANCO MUNDIAL
653			_a
700			_aDetragiache, Enrica
710			_aBanco Mundial
920			_a16082 F
942			_cDOCU _jF 336.3435 D 16082
999			_c4937 _d4937