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Has the regulation of old debts in the successor companies proven worthwhile?

Author

Listed:
  • P. Hagelschuer

    (Humboldt University, Berlin, Germany)

  • A. Häger

    (Humboldt University, Berlin, Germany)

Abstract

The old debt problem resulting from the transformation of the agricultural co-operatives of the former GDR (German Democratic Republic) is described with respect to its evolution and its economic policy treatment during the process of transformation. So far, the measures for the treatment of old debts have had business economically stabilising effects. Nevertheless, debts are still growing. The farms which are affected by such old debts are strongly interested in solving this problem. This explains the intensity of the results' discussion of a scientific expert opinion on an analysis of the mode of action of the old debt regulation in agriculture. The conclusions which can be drawn from the public discussion of these results with respect to the future treatment of these old debts show, that the affected farms favour a kind of bonus rule for debt repayment. Such a regulation also seems to be acceptable for the treasury as the final bearer of the remaining debts and as a solution to minimise the taxpayers' burden.

Suggested Citation

  • P. Hagelschuer & A. Häger, 2002. "Has the regulation of old debts in the successor companies proven worthwhile?," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 48(4), pages 161-165.
    • Handle: RePEc:caa:jnlage:v:48:y:2002:i:4:id:5297-agricecon
    DOI: 10.17221/5297-AGRICECON
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    References listed on IDEAS

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    1. Hirschauer, Norbert & Forstner, Bernhard & Odening, Martin, 2000. "Die Wirkungen der Besserungsscheinregelung auf die Kapitalkosten der Altkredite - Eine modelltheoretische Analyse," German Journal of Agricultural Economics, Humboldt-Universitaet zu Berlin, Department for Agricultural Economics, vol. 49(02).
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