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Adoption of an IMF Programme and Debt Rescheduling. An Empirical Analysis

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  • Silvia Marchesi

    (Department of Economics, University of Warwick)

Abstract

The existence of an empirical relationship between the adoption of an IMF programme and the concession of a debt rescheduling by commercial 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.

Suggested Citation

  • Silvia Marchesi, 2001. "Adoption of an IMF Programme and Debt Rescheduling. An Empirical Analysis," Development Working Papers 152, Centro Studi Luca d'Agliano, University of Milano.
    • Handle: RePEc:csl:devewp:152
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    References listed on IDEAS

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    More about this item

    Keywords

    IMF Conditionality; Debt Rescheduling; Bivariate probit;
    All these keywords.

    JEL classification:

    • F34 - International Economics - - International Finance - - - International Lending and Debt Problems
    • C35 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Discrete Regression and Qualitative Choice Models; Discrete Regressors; Proportions

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