Commercial Bank Debt Restructuring: The Experience of Bulgaria
IMF Policy Discussion Papers, May 1, 1995
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- Commercial Bank Debt Restructuring: The Experience of Bulgaria
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Bibliographic details
- Authors: Aerdt G. F. J. Houben
- Published: May 1, 1995
- Series: IMF Policy Discussion Papers
- DOI: https://doi.org/10.5089/9781451971941.003
Summary and Main Finding
- Reviews commercial bank debt restructuring based on the recent experience of Bulgaria.
- The deal generated substantial debt relief at a remarkably low cost.
- The paper draws several lessons that may be of broader relevance to countries restructuring bank debt.
Analysis of Alternative Options and Their Costs
- Addresses suggestions that Bulgaria should have held out for more favorable treatment or should now seek further debt reduction.
- Identifies the likely costs of holding out for better terms or pursuing additional debt reduction.
Medium-Term Prospects and Policy Issues
- Discusses key policy issues that will determine growth prospects and debt sustainability over the medium term.
- Argues that the deal’s success remains to be underpinned in particular by judicious fiscal and debt management policies.
Subjects and Keywords
- Subjects: Asset and liability management, Bonds, Debt burden, Debt reduction, Debt restructuring, Debt service, External debt, Financial institutions
- Keywords: Bonds, Bulgaria, cost, Debt burden, debt difficulty, Debt reduction, Debt restructuring, Debt service, debt service reduction, discount bond, Eastern Europe, financing proposal, gross debt service, par bond, par bond option, par bonds repurchase, PDP, restructured debt service give confidence, restructuring agreement, secondary market, secondary market price, upfront cost