The HIPC Initiative: True and False Promises

Daniel Cohen

International Finance, 2001, vol. 4, issue 3, 363-380

Abstract: The paper develops the view that understanding of the HIPC initiative is distorted by a lack of perspective on the ‘market value’ of the debt which is written down. The appropriate ‘market value’ takes account of the risk of non‐payment: arrears, rescheduling and ‘constrained’ refinancing of various sorts. Building on econometric evidence that relies on middle income debtors in the 1980s, the paper argues that the initiative is about ten times less generous than face value accounting would suggest.

Date: 2001
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https://doi.org/10.1111/1468-2362.00078

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Working Paper: The HIPC Initiative: True and False Promises (2000)
Working Paper: The HIPC Initiative: True and False Promises (2000)
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