Repayment versus Investment Conditions and Exclusivity in Lending Contracts

Spiros Bougheas, Indraneel Dasgupta () and Oliver Morrissey

Journal of Institutional and Theoretical Economics (JITE), 2011, vol. 167, issue 2, 247-265

Abstract: Lenders condition future loans on some index of past performance. Typically, banks condition future loans on repayments of earlier obligations, whilst international organizations (official lenders) condition future loans on the implementation of some policy action (iinvestmentj). We build an agency model that accounts for these tendencies. The optimal conditionality contract depends on exclusivity - the likelihood that a borrower who has been denied funds from the original lenders cannot access funds from other lenders.

JEL-codes: F34 G21 (search for similar items in EconPapers)
Date: 2011
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.mohrsiebeck.com/en/article/repayment-v ... 28093245611796589915 (text/html)
Fulltext access is included for subscribers to the printed version.

Related works:
Working Paper: Repayment versus Investment Conditions and Exclusivity in Lending Contracts (2009)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mhr:jinste:urn:sici:0932-4569(201106)167:2_247:rvicae_2.0.tx_2-f

Ordering information: This journal article can be ordered from
Mohr Siebeck GmbH & Co. KG, P.O.Box 2040, 72010 Tübingen, Germany

Access Statistics for this article

Journal of Institutional and Theoretical Economics (JITE) is currently edited by Gerd Mühlheußer and Bayer, Ralph-C

More articles in Journal of Institutional and Theoretical Economics (JITE) from Mohr Siebeck, Tübingen
Bibliographic data for series maintained by Thomas Wolpert ().