Study: Painful ‘haircuts’ lead to lower debt
Crisis-hit countries that go through a painful debt restructuring programme as part of a bailout enjoy much steeper cuts in their medium-term debt, according to an independent analysis of International Monetary Fund rescue programmes.
A study by the Institute of International Finance, a trade body representing large banks that lend into emerging markets, found all but three of 25 recent IMF programmes saw a reduction in debt increase over five years, with an average decline of 27%.The 16 economies that restructured ...
Please take a trial or subscribe to access this content.
Contact our subscriptions team to discuss your access: email@example.com