Abstract
In search of solutions to the international debt crisis, attention has recently been focused on a new financing technique, so-called debt-equity swaps. An essential difference between these and the usual swapping of debt into equity is that the former allow a wider range of applications. The following article seeks to elucidate the possible contribution of debt-equity swaps towards easing the debt burden and to estimate the potential for a reduction in external debt and its effect on the balance of payments of the debtor nation.
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Detailed information about valid debt-equity swap regulations in Latin America is given in: W. Spieles: Möglichkeiten zur Umwandlung von Forderungen in Beteiligungskapital in Lateinamerika, in: Deutsch-Siidamerikanische Bank AG, Kurzbericht über Lateinamerika, No. 1, 1987.
A widely used indicator for international standing is published bi-annually by the “Institutional Investor”.
A. Marton: The Debate over Debt-equity Swaps, in: Institutional Investor, February 1987, p. 116.
R. A. Marin: Debt to Equity Conversion: A Practitioner’s Perspective, Presentation to Getulio Vargas Foundation on December 4th, 1986.
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Spieles, W. Debt-equity swaps and the heavily indebted countries. Intereconomics 22, 120–124 (1987). https://doi.org/10.1007/BF02932232
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DOI: https://doi.org/10.1007/BF02932232