Institutional Arrangements to Ensure Willingness to Repay in Financial Markets: A Case Study of Paraguay

Stephane Straub and Horacio Sosa

No 3062, Research Department Publications from Inter-American Development Bank, Research Department

Abstract: The paper examines the consequences of the deficiencies in the legal protection of creditors` rights and the low efficiency of judicial enforcement on the functioning of credit markets in Paraguay, as well as the solutions developed to compensate for the informality and enforcement flaws of financial contracts.

Date: 1999-04
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