Economic Analysis of Debt-Equity Swaps

  • Günter Franke
Conference paper
Part of the Studies in International Economics and Institutions book series (INTERN.ECONOM.)

Abstract

The prospects to solve the financial problems of the heavily indebted less developed and developing countries are dim at present. With a few exceptions, these countries face substantial difficulties to pay the interest on their loans, not to speak about repayment of the principal. Apart from debt relief, economic growth of the indebted countries is viewed as the primary means of improving their financial status. Therefore debt-equity swaps (DES) have been greeted with enthusiasm in the financial press as a device to improve economic growth and, at the same time, to reduce the foreign currency-denominated debt of the troubled countries (see e.g. Economist, 1987, Schubert, 1987).

Keywords

Income Assure Expense VOlatility Poss 

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Copyright information

© Springer-Verlag Berlin Heidelberg 1989

Authors and Affiliations

  • Günter Franke

There are no affiliations available

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