Considerations in the choice of the appropriate discount rate for evaluating sovereign debt restructurings
By: Julie Kozack
Contributors: International Monetary Fund
Series: IMF policy discussion paper -- PDP/05/9; IMF policy discussion paper (Online) -- PDP/05/9
Publisher: International Monetary Fund
Published: 2005
Place of publication: [Washington, D.C.]
Language: eng
Format: [electronic resource] /
Description: Assessments regarding the effectiveness of sovereign debt restructurings are often  summarized by comparisons of the net present value of debt service before and after the  restructuring. These calculations are inherently sensitive to the choice of discount rate. This  paper explores issues that arise in selecting discount rates when evaluating sovereign debt  restructurings. It suggests using a range of discount rates and centering the analysis around  the internal rate of return to assess whether the debt restructuring has generated net present  value savings or costs to the debtor.
Notes: Title from PDF file (viewed on Mar. 29, 2006).

"December 2005."

"Policy Development and Review Department."

Includes bibliographical references.

Also available in print.

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Mode of access: World Wide Web.