The international organization of Third World debt

1981 ◽  
Vol 35 (4) ◽  
pp. 603-631 ◽  
Author(s):  
Charles Lipson
Keyword(s):  
International Economic ◽  
Commercial Banks ◽  
Sovereign Debt ◽  
Third World ◽  
Ad Hoc ◽  
Primary Source ◽  
Commercial Banking ◽  
International Organization ◽  
Commercial Relationships ◽  
Third World Debt

Third World debt grew very rapidly in the 1970s. Many states, faced with sharply higher costs for energy and manufactured imports, borrowed aggressively in unregulated offshore capital markets. But what constrains sovereign states to repay this debt to commercial banks? Creditors do not turn to their home states to enforce payment; rather, the supervision of sovereign debt is largely a function of commercial banking arrangements, especially lenders' syndicates, and the International Monetary Fund's conditional lending. This political structure, which involves unified private sanctions, has ensured that no state defaults unless it is insolvent or is willing to accept a radical rupture in its international commercial relationships. When the problem is insolvency, creditors routinely convene ad hoc conferences. In conjunction with an IMFapproved stabilization program, creditors can renegotiate debt-service schedules and provide new financing if necessary. These arrangements are distinctive among international economic regimes because they rely on nonstate actors as the primary source of rules, norms, and procedures.

Reframing the debate: the debt relief initiative and new normative values in the governance of third world debt

2014 ◽  
Vol 10 (2) ◽  
pp. 249-272 ◽  
Author(s):  
Celine Tan
Keyword(s):  
International Development ◽  
Sovereign Debt ◽  
Third World ◽  
Poverty Reduction ◽  
Participatory Development ◽  
Normative Values ◽  
Poor Countries ◽  
Hipc Initiative ◽  
The Impact ◽  
Third World Debt

AbstractThe introduction of the Heavily Indebted Poor Countries (HIPC) initiative in 1996 established landmark legal and policy innovations both in the regulatory landscape of sovereign debt and in the framework of international development finance. As the HIPC framework draws to a close, this paper reviews the impact of this initiative on the regulation of sovereign debt, in particular the governance of third world debt. The paper considers the implications of the initiative's explicit link between debt restructuring and development policy and its incorporation of non-traditional normative values, such as poverty reduction and participatory development, into the legal and political discourse of sovereign debt. The paper argues that while the changes which brought about the HIPC initiative have led to a number of key initiatives to reform the governance of third world debt, they have also had the contradictory effect of reinforcing the core disciplinary discourses and pre-existing practices of the sovereign debt regime.

scholarly journals Effects of quality of assets and credit loss provision expense to profit of joint stock commercial banks in Vietnam

2021 ◽  
Vol 5 (3) ◽  
pp. first
Author(s):  
Tâm Thanh Trần ◽  
Vy Vũ Tường Lê
Keyword(s):  
International Economic ◽  
Economic Integration ◽  
Commercial Banks ◽  
Banking System ◽  
Business Environment ◽  
Commercial Banking ◽  
Current Period ◽  
The Face ◽  
Asset Quality

International economic integration is an inevitable trend and an objective requirement for any country in the current period of development. However, this process, in addition to creating certain advantages and opportunities for countries to participate in integration, also puts these countries in the face of difficulties and challenges. The roadmap for international economic integration puts the enterprises of developing countries in general, the system of joint stock commercial banks in particular, in the face of a new business environment with fierce competitive pressures and unbalanced competitors. Therefore, the research and analysis of the correlation between factors and profits of the Vietnamese joint stock commercial banking system in the current integration period to provide practical solutions which improve the performance of joint stock commercial banks is an urgent issue. From the above practice, this article examines the relationship between asset quality, credit risk provisioning costs, and profitability of joint stock commercial banks in Vietnam through ROE. The paper has evaluated this relationship by using table regression analysis with data collected from 2012 to 2019 at 28 joint stock commercial banks. Data analyzed on the Stata software and the results show a positive relationship between the quality of bank assets and returns and the inverse relationship between the cost of provisioning for credit losses and the profitability of joint stock commercial banks in Vietnam during the above period. Based on this result, a number of recommendations have been proposed to help joint stock commercial banks in Vietnam grow steadily in the condition of the economy being affected by the Covid-19 pandemic.

The Limits of Creditors' Rights: The Case of Third World Debt

1992 ◽  
Vol 9 (1) ◽  
pp. 114-140 ◽  
Author(s):  
James W. Child
Keyword(s):  
World Bank ◽  
Latin American ◽  
Commercial Banks ◽  
Third World ◽  
Private Party ◽  
The World Bank ◽  
The World ◽  
Third World Debt ◽  
Latin American Countries ◽  
The International Monetary Fund

At present, Third World countries owe over one trillion dollars to the developed Western nations; much of the debt is held by the leading international commercial banks. The debt of six Latin American countries alone — Argentina, Brazil, Chile, Mexico, Peru, and Venezuela — is over $330 billion, of which $240 billion is owed to commercial banks. Let us immediately narrow our focus to loans made by the major international commercial banks to Third World governments. We shall not be concerned with government-to-government loans, or private-party-to-private-party loans, or with debt owed to the World Bank or the International Monetary Fund. The bank-to-government loans — the so-called “sovereign loans” — are the most economically troublesome and morally interesting. The largest lenders, at least with respect to the Latin American countries, are the American banks Citibank, Chase Manhattan, Bank of America, Manufacturers Hanover, and Chemical Bank. About fifteen Third World countries have serious debt problems, including the largest: Brazil, Mexico, and Argentina.

Income Diversification and Bank Efficiency in Vietnam

2017 ◽  
pp. 52-67
Author(s):  
Sang Nguyen Minh
Keyword(s):  
Regression Model ◽  
Commercial Banks ◽  
Banking System ◽  
Operational Efficiency ◽  
Commercial Banking ◽  
Tobit Regression ◽  
Income Diversification ◽  
Positive Effects ◽  
Study Results ◽  
The Impact

This study uses the DEA (Data Envelopment Analysis) method to estimate the technical efficiency index of 34 Vietnamese commercial banks in the period 2007-2015, and then it analyzes the impact of income diversification on the operational efficiency of Vietnamese commercial banks through a censored regression model - the Tobit regression model. Research results indicate that income diversification has positive effects on the operational efficiency of Vietnamese commercial banks in the research period. Based on study results, in this research some recommendations forpolicy are given to enhance the operational efficiency of Vietnam’s commercial banking system.

scholarly journals Efficiency of Commercial Banking in Developing Countries

Mathematics ◽  
2021 ◽  
Vol 9 (14) ◽  
pp. 1597
Author(s):  
Violeta Cvetkoska ◽  
Katerina Fotova Čiković ◽  
Marija Tasheva
Keyword(s):  
Developing Countries ◽  
Commercial Banks ◽  
Feasible Solution ◽  
Banking System ◽  
Efficiency Score ◽  
Commercial Banking ◽  
Real Situation ◽  
Super Efficiency ◽  
Bank Management ◽  
The Stability

The aim of this paper is to evaluate the relative efficiency of commercial banks in three developing countries in Europe (North Macedonia, Serbia, and Croatia) in the period from 2015 to 2019, and to provide targets for improvement for the inefficient banks by using DEA. The variables are selected under the income-based approach. Based on the output-oriented BCC model, unusual results are obtained for a few commercial banks in each country, that is, they are BCC relative efficient, which is contrary to the real situation. In order to identify outliers that can affect the efficiency results, a super-efficiency procedure is applied so that banks with a super-efficiency score higher than 1.2 (outliers) or for which a feasible solution was not found are considered in detail and removed, and then the output-oriented BCC model is rerun. Based on the obtained results, the Macedonian commercial banking system shows the highest efficiency (91.1%), followed by the Croatian (90.9%) and the Serbian (81.9%) banking system. The estimated targets for improvement of the inefficient commercial banks could help their top bank management in better resource allocation and making fact-based and faster decisions by which they can improve the operation of the banks they lead and contribute to the stability of the financial system.

British economy & Third World debt

1993 ◽  
Vol 20 (57) ◽  
pp. 116-117
Author(s):  
Helen O'Connell
Keyword(s):  
Third World ◽  
British Economy ◽  
Third World Debt

The Politics of Third World Debt

1990 ◽  
Vol 23 (3) ◽  
pp. 411 ◽  
Author(s):  
Howard J. Wiarda
Keyword(s):  
Third World ◽  
Third World Debt

CREDIT RISK AND COMMERCIAL BANKS’ PERFORMANCE IN NIGERIA: A PANEL MODEL APPROACH

2012 ◽  
Vol 02 (02) ◽  
pp. 31-38 ◽  
Author(s):  
KOLAPO T. Funso ◽  
AYENI R. Kolade ◽  
OKE M. Ojo
Keyword(s):  
Credit Risk ◽  
Commercial Banks ◽  
Commercial Banking ◽  
Loan Loss ◽  
Return On Assets ◽  
Cross Sectional ◽  
Loan Loss Provision ◽  
Panel Model ◽  
Percent Increase ◽  
Credit Analysis

The study carried out an empirical investigation into the quantitative effect of credit risk on the performance of commercial banks in Nigeria over the period of 11 years (2000-2010). Five commercial banking firms were selected on a cross sectional basis for eleven years. The traditional profit theory was employed to formulate profit, measured by Return on Asset (ROA), as a function of the ratio of Non-performing loan to loan & Advances (NPL/LA), ratio of Total loan & Advances to Total deposit (LA/TD) and the ratio of loan loss provision to classified loans (LLP/CL) as measures of credit risk. Panel model analysis was used to estimate the determinants of the profit function. The results showed that the effect of credit risk on bank performance measured by the Return on Assets of banks is cross-sectional invariant. That is the effect is similar across banks in Nigeria, though the degree to which individual banks are affected is not captured by the method of analysis employed in the study. A 100 percent increase in non-performing loan reduces profitability (ROA) by about 6.2 percent, a 100 percent increase in loan loss provision also reduces profitability by about 0.65percent while a 100 percent increase in total loan and advances increase profitability by about 9.6 percent. Based on our findings, it is recommended that banks in Nigeria should enhance their capacity in credit analysis and loan administration while the regulatory authority should pay more attention to banks’ compliance to relevant provisions of the Bank and other Financial Institutions Act (1999) and prudential guidelines.

scholarly journals Cleaning up Third World Debt Without Getting Taken to the Cleaners

1990 ◽  
Vol 4 (1) ◽  
pp. 31-42 ◽  
Author(s):  
Jeremy Bulow ◽  
Kenneth Rogoff
Keyword(s):  
Third World ◽  
Debt Crisis ◽  
Population Control ◽  
Development Aid ◽  
Bank Debt ◽  
International Debt ◽  
Regulatory Changes ◽  
Loan Guarantees ◽  
Third World Debt ◽  
Made In

Should taxpayers of wealthy countries finance a leveraged buyout of third world debt? The case for establishing an international debt discount facility rests on the belief that the overhang of foreign commercial bank debt is stifling growth in the Highly Indebted Countries, and that coordination problems among private sector banks are blocking efficiency-enhancing debt reduction schemes. Thus there is scope for a multilateral government agency to step in, buy up the debts, and pass on the efficiency gains to struggling debtors. Our contention is that a debt discount facility would in fact be a black hole for aid funds, and would yield only minimal efficiency benefits. Our assessment of the debt crisis suggests a very different approach. Development aid should be divorced from debt negotiations and instead should be tied to countries' performance in areas such as environmental policy, drug interdiction, and population control. Future aid allocations should not be disguised as loan guarantees, and the massive bond obligations of existing multilateral lenders ought to be placed on the books. Finally, we recommend reversing a number of legal and regulatory changes made in the 1970s that served to encourage the loans in the first place.

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