A Note on Burden Sharing Among Creditors

28 Pages Posted: 15 Feb 2006

See all articles by Richard Haas

Richard Haas

affiliation not provided to SSRN

Steven Symansky

International Monetary Fund (IMF) - Fiscal Affairs Department

Date Written: March 1992

Abstract

This paper presents a framework for evaluating the relative contributions of different creditors in cases where only partial payments can be made by the debtor country. A methodology is developed to calculate partial paymentsor alternatively putdetermine residual financing. By focusing on the relative seniority of creditors and expectations of the debtor`s ability to repay alternative sharing rules are quantified. The measure is based on the expected present value of payments. Creditors earning a below-market rate of return suffer a burden; creditors earning the same rate of return are said to share the burden equally.

JEL Classification: F34

Suggested Citation

Haas, Richard and Symansky, Steven, A Note on Burden Sharing Among Creditors (March 1992). IMF Working Paper No. 92/21, Available at SSRN: https://ssrn.com/abstract=884646

Richard Haas

affiliation not provided to SSRN

No Address Available

Steven Symansky

International Monetary Fund (IMF) - Fiscal Affairs Department ( email )

700 19th Street, NW
Washington, DC 20431
United States

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