POLISH EXTERNAL DEBT

Optimal external debt and default

This paper analyses whether sovereign default episodes can be seen as contingencies of optimal international lending contracts. The model considers a small open economy with capital accumulation and without commitment to repay debt. Taking first order approximations of Bellman equations, I derive analytical expressions for the equilibrium level of debt and the optimal debt contract. In this env...

External Financing Method: Financing through Debt and Stock Issuance

Countries need short, medium, and long-term investment plans for production growth and development. Different sources for these investments can be supplied through retained profit, stock issuance, and bank loans, or a combination them. Institutions and firms need huge amount of capitals for their survival, production, and also development of activities. In addition, these institutions and firms...

A Cross-Country Comparison of External Debt

External debt accrues as a result of borrowing by Australian residents from residents of other countries. It includes the borrowings of both the private and government sectors. Net external debt represents gross debt less lending by Australian residents to non-residents. Debt, however, is not the only form of external liability. Foreigners can also hold equity claims in the form of share portfo...

External and Public Debt Crises: Discussion

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...