The Brady Initiative refers to debts owed to commercial banks. Debt and debt service reduction are to be achieved mainly by buying back bank debts with a considerable discount or by swapping old bank debts for new papers with the same value but lower interest rates. The Brady Initiative has led...

The Brady Initiative has led to the conclusion of several debt-relief agreements. Opinion on the effects of these agreements on the debtor countries involved vary widely. The following article aims at clarifying the debate.

This article presents event studies that find a significant effect on dollar bond yield spreads when rating agencies put emerging-market sovereign bonds on review with negative outlook. The finding has two conditional implications. If rating agencies can be turned from late into early warning...

Recently, the calls for closer monetary cooperation between the Asian NICs and Japan have becoming louder. This paper discusses the pros and cons of pegging to the yen and compares them with those of a basket peg. (DSE)

In the countries of Eastern Europe the question as to the degree of currency convertibility is among the most important decisions to be taken when setting the framework for a free market economy. This article attempts to indicate the monetary and fiscal measures that will be required if the...

Many developing countries are currently considering liberalisation of external capital flows. While the ultimate objective of financial opening is to raise efficiency and growth, the reform process must be carefully designed to achieve these results. A recent conference has discussed the policy...