'Secret' buy-backs of LDC debt
Cohen, Daniel and Verdier, Thierry (1995) 'Secret' buy-backs of LDC debt. Journal of International Economics, 39, (3-4), 317-334. (doi:10.1016/0022-1996(95)01372-9).
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We analyze the buy-back of its debt by an LDC. Contrary to previous analyses of this subject, we assume that the debtor can hide its transactions behind the veil of a fictitious operator: the banks, we assume, cannot discriminate intra-bank transactions from buy-backs by the debtor itself. With this assumption, the lenders set the price by (rationally) taking account of the country's incentive to repurchase its debt. Will the debtor undertake a buy-back of its debt? The answer is a qualified yes. Large buy-backs will take place.
|Digital Object Identifier (DOI):||doi:10.1016/0022-1996(95)01372-9|
|Keywords:||buy-back, ldc debt|
|Subjects:||H Social Sciences > HG Finance
H Social Sciences > HB Economic Theory
|Divisions:||University Structure - Pre August 2011 > School of Social Sciences > Economics
|Date Deposited:||14 Dec 2007|
|Last Modified:||31 Mar 2016 11:59|
|RDF:||RDF+N-Triples, RDF+N3, RDF+XML, Browse.|
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