Robert Kahn: A Paris Club for Europe – Council on Foreign Relations

Europe needs to begin negotiations this year on a rules-based approach to official-sector debt relief, in which countries meeting firm conditionality would be assured of adequate (and predictable) relief. This approach would have the following elements: countries would receive a cutoff date and debt acquired before that date would be eligible for restructuring; restructurings would be tranched; and assistance would be conditional on policy performance, including structural reforms, continued progress toward macroeconomic balance, and programs for restructuring over-indebted corporate sectors. Though it is difficult to quantify the effect of reducing debt on the European economy, some estimates suggest that the resultant rebound in investment could raise European trend growth by up to one percentage point.

via Robert Kahn: A Paris Club for Europe – Council on Foreign Relations.

Both comments and trackbacks are currently closed.
%d bloggers like this: