Reschedulings as the Groundwork for the Secondary Market in Sovereign Debt

13 Pages Posted: 15 Jun 2017

See all articles by Ross P. Buckley

Ross P. Buckley

University of New South Wales (UNSW) - Faculty of Law

Date Written: January 01, 1998

Abstract

The secondary market in the debt of less developed countries, now known as the ‘emerging markets’, has been newsworthy throughout the 1990s because of its explosive growth and the profitability of some investments in these markets. However, few appreciate how the strategy of repeated reschedulings in the 1980s laid the groundwork for the subsequent rapid development of this market. This little known role of the reschedulings is the focus of this article.

The first response of the international commercial banks to the debt crisis in 1982 was to reschedule the current debt of the less developed countries, as the ‘emerging markets’ were then known, and extend fresh loans to permit the payment of interest upon the rescheduled debt. This remained the standard response throughout the 1980s and received the imprimatur of the U.S. government in the Baker Plan.

Keywords: Emerging Markets, Reschedulings, Baker Plan, Commercial Banks, Debt Crisis

Suggested Citation

Buckley, Ross P., Reschedulings as the Groundwork for the Secondary Market in Sovereign Debt (January 01, 1998). (1998) 26 Denver Journal of International Law and Policy 299; UNSW Law Research Paper No. 17-39. Available at SSRN: https://ssrn.com/abstract=2986634 or http://dx.doi.org/10.2139/ssrn.2986634

Ross P. Buckley (Contact Author)

University of New South Wales (UNSW) - Faculty of Law ( email )

Sydney, New South Wales 2052
Australia

Register to save articles to
your library

Register

Paper statistics

Downloads
9
Abstract Views
127
PlumX Metrics
!

Under construction: SSRN citations will be offline until July when we will launch a brand new and improved citations service, check here for more details.

For more information