On the sustainability of external debt: is debt relief enough?

Debt Relief and the Rule of Thumb: Analytical History of HIPC Debt Sustainability Targets

This paper traces the origins of HIPC debt sustainability targets. These targets are interpreted as ‘switching values’, below which countries are expected to avoid debt service problems, but as such, they do not take into account that countries encounter debt problems for a variety of reasons and at different levels of debt. Most likely the ‘true’ switching value of the debt-to-export ratio of ...

An Assessment of Pakistan ' s External Debt Sustainability Escaping the Debt Trap

The findings, interpretations and conclusions expressed in this study are those of the authors and should not be attributed in any manner to the Asian Development Bank (ADB) or the countries it represents. The Asian Development Bank encourages use of the material presented herein, with appropriate credit. Foreword ADB and Pakistan have been development partners for almost 35 years. The first lo...

Has Debt Relief Made

Sustainability of Public Debt

Liquidity and Feasible Debt Relief∗

This paper analyzes the determinants of secondary debt market liquidity, identifying conditions under which trading in competitive markets results in sufficient ownership concentration to induce ex post efficient debt relief. The feasibility of debt relief is path-dependent, hinging upon interim economic conditions. Secondary debt markets are likely to freeze during recessions, precisely when t...