Study: Painful ‘haircuts’ lead to lower debt

MacriLagarde_Alamy_230x150
By Phil Thornton
03 Oct 2019

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: subs@globalcapital.com

Or sign up for a trial to gain full access to the entire site for a limited period.

Free Trial

Corporate access

To discuss GlobalCapital access for your entire department or company please contact our subscriptions sales team at: subs@globalcapital.com or find out more online here.