Motivated by empirical facts, we develop a theoretical model for optimal currency government debt portfolio and debt payments, which allows both government debt aversion and jumps in the exchange rates. We obtain first a realistic stochastic differential equation for public debt, and then solve explicitly the optimal currency debt problem. We show that higher debt aversion and jumps in the exch...

This study examines the interaction between external debt and economic growth, and analyses the sustainability of Nigeria’s foreign debt. Given the several reschedulings and persistent accumulation of the debt arrears, and consistently high debt burden ratios, it is doubtful if the debt burden can be judged as sustainable. This study employed analytical method and the findings from the analysis...

The article deals with legal public and private aspects of banking identity in the sphere national (public) debt; identifies types bank relations; considers requirements budget legislation. It presents proposals for development competition procurement legislation, introduces socially significant approaches to activities banks as instruments improving financial literacy implementing complex inve...

Abstract The 2008 financial crisis triggered the debt in Europe. High debt-to-GDP ratios made it impossible for some countries to apply countercyclical policy order overcome recession. As a result, highly indebted were forced austerity measures avoid sovereign default, which deepened even further decline of their GDP. We examine case country, is not cut off from markets yet, using bilinear diff...

One central goal of the enhanced Heavily Indebted Poor Countries (HIPC) Initiative and the more recent Multilateral Debt Relief Initiative (MDRI) is to free up additional resources for public spending on poverty reduction. The health sector was expected to benefit from a considerable share of these funds. The volume of released resources is important enough in certain countries to make a differ...

What is the magnitude of credit constraint or credit gap affecting small businesses? This paper provides estimates of credit gap, defined as the difference between the desired and actual levels of debt for credit-constrained small businesses using the data from the National Survey of Small Business Finances. The estimated credit gap is approximately 20 percent – credit constrained small busines...