TY  - BOOK
AU  - Chamley,Christophe
AU  - Chamley,Christophe
AU  - Pinto,Brian
TI  - Sovereign Bailouts and Senior Loans
PY  - 2012///
CY  - Washington, D.C.
PB  - The World Bank
KW  - Bankruptcy and Resolution of Financial Distress
KW  - Catalytic lending
KW  - Debt forgiveness
KW  - Debt Markets
KW  - Economic Theory & Research
KW  - External Debt
KW  - Finance and Financial Sector Development
KW  - Financial Intermediation
KW  - Institutional lending
KW  - Macroeconomics and Economic Growth
KW  - Multiple equilibria
KW  - Poverty Reduction
KW  - Senior loans
N2  - Institutional lending in crisis is evaluated from a theoretical point of view. First, the share of senior loans in new loans is irrelevant under a given probability distribution of the country's resources. Second, seniority may partially alleviate the inefficiency of debt contracts when the distribution of resources is endogenous to the country's physical investment and effort towards success. Third, with multiple lending rate equilibria, institutional lending may induce a switch to a lower private loan rate if it can be done in a sufficiently large amount. Fourth, conditions are analyzed under which debt forgiveness is efficient under a financial shock
UR  - http://elibrary.worldbank.org/doi/book/10.1596/1813-9450-6181
ER  -