Arbeitspapier
Debt Sustainability in Low-Income Countries: The Grants versus Loans Debate in a World without Crystal Balls
When allocating their aid budget, development agencies need to decide whether to give outright grants or use concessional loans that blend a grant and credit element. Theory suggests that the degree of concessionality should be negatively correlated with debt sustainability. Several donors use the World Bank/IMF Debt Sustainability Framework to guide their aid decisions. They give loans to low-risk countries, a blend of loans and grants to medium-risk countries, and only grants to high-risk countries. The paper shows that there are problems with this approach and proposes an alternative allocation mechanism based on GDP-indexed concessional loans.
- Sprache
-
Englisch
- Erschienen in
-
Series: FERDI Working Paper ; No. P120
- Klassifikation
-
Wirtschaft
International Monetary Arrangements and Institutions
International Lending and Debt Problems
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Panizza, Ugo
- Ereignis
-
Veröffentlichung
- (wer)
-
Fondation pour les études et recherches sur le développement international (FERDI)
- (wo)
-
Clermont-Ferrand
- (wann)
-
2015
- Handle
- Letzte Aktualisierung
-
20.09.2024, 08:21 MESZ
Datenpartner
Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Panizza, Ugo
- Fondation pour les études et recherches sur le développement international (FERDI)
Entstanden
- 2015
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