Marchesi, Silvia (1999) Adoption of an IMF programme and debt rescheduling: an empirical analysis. Working Paper. Coventry: University of Warwick, Department of Economics. (Warwick economic research papers.

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Abstract

The existence of an empirical relationship between the adoption of an IMF programme and the concession of a debt rescheduling by commercial and official creditors is tested using a bivariate probit model. If countries who have arrangements with the IMF are more likely than others to obtain a rescheduling of their external debt we could conclude that the adoption of an IMF programme could work as a sort of signal of a country’s “good willingness”, which is thus rewarded with the debt relief. The results confirm the existence of a significant effect of the adoption of an IMF programme on the subsequent concession of a debt rescheduling by creditors.

Item Type:	Working or Discussion Paper (Working Paper)
Alternative Title:	Adoption of an International Monetary Fund programme and debt rescheduling: an empirical analysis
Subjects:	H Social Sciences > HJ Public Finance
Divisions:	Faculty of Social Sciences > Economics
Library of Congress Subject Headings (LCSH):	International Monetary Fund, Debt relief, Probits, International economic relations
Series Name:	Warwick economic research papers
Publisher:	University of Warwick, Department of Economics
Place of Publication:	Coventry
Date:	November 1999
Number:	No.542
Number of Pages:	35
Status:	Not Peer Reviewed
Access rights to Published version:	Open Access
Funder:	Fifth Framework Programme (European Commission) (FP5)
Grant number:	ERB4001GT973677 (FFP)
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URI:	http://wrap.warwick.ac.uk/id/eprint/1634

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