Gouging the Gauchos

The Debtor Prisoner s Dilemma

These recommendations would then apply to all creditors.

In debt crises, blame tends to fall on the debtors.

In paragraph 14, the word and between the words debtors and official should be deleted.

It was thus recommended that civil society, as well as debtors and creditors, be involved in the debt resolution process.

The US is gradually transferring resources from creditors to debtors through financial repression.

Of course, inflation is an unfair and arbitrary transfer of income from savers to debtors.

All material accounts receivable have been included in the financial statements and represent valid claims against debtors.

Often, debtor countries are squeezed so hard for payment that they are bankrupt again after a few years.

First, it aims to ensure that obligations are fairly and regularly met when a debtor becomes financially insolvent.

Most of the big Latin American debtors took extraordinary pains to avoid an explicit default.

The World Bank apos s Debtor Reporting System has expanded its coverage to 116 borrowing member countries.

Indeed, the proportion of deficit spending among enterprises is on the rise, and the accounts receivable turnover rate is falling.

Efforts should continue to reach agreement on a mechanism that ensures fair burden sharing between debtors and creditors.

Recently, the Dominican Republic and Jordan, not counted among the 16 major debtors, also completed agreements with their banks.

Eighth, an extended period of negative real interest rates implies a redistribution of income and wealth from creditors and savers toward debtors and borrowers.

Even if we can coerce traditional debt free savers to spend, it is unlikely that there are enough of them in Las Vegas.

Just as inflation helps debtors by eroding the real value of their debts, deflation hurts them by increasing the real value of what they owe.

Debt relief could take various forms other than Eurobonds, and would be conditional on debtors abiding by the fiscal compact.

Savers were repressed in order to lower the costs of credit for debtors (including governments) and those seeking to borrow for business expansion.

Permanent debtor creditor dialogues, the provision of transparency, and information on emerging market debt would be ensured through the creation of a permanent international debt framework secretariat.

There was a need for continuing efforts by troubled debtors and by the international community to bring about a resolution of remaining debt problems.

24 Collective Action Clauses included in bond or loan contracts would prevent a minority of creditors from blocking negotiations with the debtor.

If Greece chooses default, they cannot enforce their banks claims on Greek borrowers or seize Greek assets.

(b) Debtor creditor dialogue to explore alternative market based approaches for dealing with debt service difficulties in order to avoid defaults

The details differ, but the idea is the same creditors are shifting the entire burden of adjustment onto debtors, while the center avoids its own responsibility for the imbalances.

The broader message from the Greek and French elections is that the attempt to impose a benevolent creditors dictatorship is now being met by a debtors revolt.

Thus, Peru saw its labor legislation virtually rewritten by United States Congressmen indebted to American unions before the US Peru PTA was concluded.

28 Bilateral investment treaties which include bonds in the definition of investment can lead to claims against debtors for expropriation in the context of debt restructuring.

But this fear is unfounded, because it is based on a misunderstanding. What matters for debt service capacity is the debtors' income, not the general price level.

When the 2005 bankruptcy law was passed, lenders were the beneficiaries they didn t worry about how the law affected the rights of debtors.

The other was to help the major developing country debtors restore their debt servicing capacity, regain their creditworthiness, and thereby renew access to private capital markets.

5. Mr. RUNGE (Germany), speaking on behalf of the European Union and Austria, said that the international debt strategy had led to a considerable improvement in debtor creditor relations and in the management of the debt service.

In the process, a basic principle of modern capitalism that when debtors cannot pay back creditors, a fresh start is needed has been overturned.

Default teaches creditors and their governments a lesson, just as it does the debtors mistakes cost money, and your mistakes are your own.

Philosophically, the debt forgiveness approach rests on the belief that creditors share culpability for defaults with debtors, since they made the bad loans in the first place.

The draft Principles benchmark the effectiveness of insolvency and creditor rights systems and offer guidance to policymakers on the policy choices required to establish or strengthen a functional system for healthy debtor creditor relations.

It was not very imaginative Banks and multilateral development institutions should all lend more, and the debtors should continue their efforts to improve their macroeconomic policies.

Haircuts would contain this risk by encouraging closer alignment of each country s interest rate spread with its creditworthiness the essential tool by which markets impose discipline on debtors.

Throughout, the Guide seeks to establish a balance among the interests of debtors, creditors (whether secured, privileged or unsecured), affected third persons, buyers and other transferees, and the State.

The International Monetary and Financial Committee of the IMF Board of Governors and the Group of Seven finance ministers encouraged sovereign debtors and private creditors to continue their work on the voluntary code of conduct.

Almost everything the international community sends to the occupied territories of Croatia either goes directly to the remnants of the Yugoslav Army and their proxies or substitutes for goods they would take from civilians anyway.

The creditors stand to lose large sums should a member state exit the monetary union, yet debtors are subjected to policies that deepen their depression, aggravate their debt burden, and perpetuate their subordinate position.

The idea is to have a voluntary dialogue between debtors and creditors to promote corrective policy action to reduce the frequency and severity of a crisis and establish procedures which would lead to an orderly debt workout.