Financial and Fiscal Programming Under Debt Rescheduling

International Monetary Fund

No 1989/061, IMF Working Papers from International Monetary Fund

Abstract: This paper reviews implications for financial and fiscal programming of different treatments of external debt rescheduling. Adjustment formulas are derived to ensure invariance of the macroeconomic outcome. An important consideration is the impact on the income position of the central bank. The results caution against the simple adjustment formulas sometimes applied. Even when defined on a “falling due basis,” the size of the public sector deficit can be affected by the rescheduling treatment adopted. Under a properly defined aggregation between public sector deficit and income position of the central bank, the rescheduling treatment affects only the composition of the broader deficit.

Keywords: WP; central bank; interest rate; exchange rate (search for similar items in EconPapers)
Pages: 24
Date: 1989-01-01
References: Add references at CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.imf.org/external/pubs/cat/longres.aspx?sk=29830 (application/pdf)

Related works:
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:imf:imfwpa:1989/061

Ordering information: This working paper can be ordered from
http://www.imf.org/external/pubs/pubs/ord_info.htm

Access Statistics for this paper

More papers in IMF Working Papers from International Monetary Fund International Monetary Fund, Washington, DC USA. Contact information at EDIRC.
Bibliographic data for series maintained by Akshay Modi ().