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Debt-Equity Swaps and Debt forgiveness

• Author(s): International Monetary Fund,
• Publisher: International Monetary Fund
• Pages: 42
• ISBN_10: 1451980167
  ISBN_13: 9781451980165
  
• Language: en
• Categories: Business & Economics / Finance / Financial Risk Management , Business & Economics / Investments & Securities / Stocks , Business & Economics / Economics / Macroeconomics ,

Description:... This paper is concerned with debt-equity swaps in which foreign residents are a party to the exchange (i.e., it does not deal with flight capital), and with debt forgiveness. The seemingly unrelated issues of debt-equity swaps and debt forgiveness are jointly treated in this study, because debt forgiveness is in fact a special case of debt-equity swaps. Namely, it is a swap in which a positive amount of debt is exchanged for zero equity. For this reason these two problems have many common features.