Dealing Comprehensively, and Justly, with Sovereign Debt

Abstract

This chapter discusses ideas for resolving debt crises. It argues that a narrow focus on debt relief in HIPCs is insufficient and that the activist community and lenders must look to finding broader measures of foreign aid and creating a fair trading environment. In the end, finding the “right” level of debt relief is impossible and ignores the more important aim of delivering a better life to impoverished people. Support is given to a proposal floated by the IMF for a sovereign debt restructuring mechanism (SDRM) to resolve pending debt crises in developing countries.

Determinants of developing country debt: the revolving door of debt rescheduling through the Paris Club and export credits

“…9 Jack Boorman also addressed the problem of rescheduling under Paris Club negotiations, during which 'debt is piled on debt through repeated reschedulings of creditor-country claims on poorer countries'. 10 The rescheduling process is important because it is only after old loans are restructured that countries can be eligible for new export credit loans. 11 Thus much of the literature on Paris Club negotiations with developing countries is not focused on the process of debt rescheduling followed by subsequent export credits, which adds to the debt of developing countries.…”