EconStor >
United Nations University (UNU) >
World Institute for Development Economics Research (UNU-WIDER), United Nations University >
WIDER Discussion Papers, United Nations University (UNU) >

Please use this identifier to cite or link to this item:

http://hdl.handle.net/10419/52935
  
Title:Debt relief and the rule of thumb: Analytical history of HIPC debt sustainability targets PDF Logo
Authors:Hjertholm, Peter
Issue Date:2001
Series/Report no.:WIDER Discussion Papers // World Institute for Development Economics (UNU-WIDER) 2001/68
Abstract:This paper traces the origins of HIPC debt sustainability targets. These targets are interpreted as ‘switching values’, below which countries are expected to avoid debt service problems, but as such, they do not take into account that countries encounter debt problems for a variety of reasons and at different levels of debt. Most likely the ‘true’ switching value of the debt-to-export ratio of many HIPCs lies below or above the present target. Regarding the ‘fiscal window’, the lack of analytical basis for a 250 percent target for the debt-to-revenue ratio is noted, and the problems raised by the ‘openness-tax’ condition are discussed. The paper concludes that sustainability targets, as presently applied, are not well supported in analytical terms.
Subjects:debt relief
debt sustainability targets
HIPC
switching values
JEL:O11
F34
F35
Document Type:Working Paper
Appears in Collections:WIDER Discussion Papers, United Nations University (UNU)

Files in This Item:
File Description SizeFormat
333500776.pdf241.37 kBAdobe PDF
No. of Downloads: Counter Stats
Download bibliographical data as: BibTeX
Share on:http://hdl.handle.net/10419/52935

Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.