The New Basle Capital Accord and Developing Countries: Issues, Implications and Policy Proposals

Risk-management, Internal-ratings, Pro-cyclicality, Net impact

GDP-Indexed Bonds: Making It Happen

There has been increasing interest in exploring financial instruments that could limit the cyclical vulnerabilities of developing countries and reduce the likelihood of defaults and debt crises. GDP-indexed bonds fall into this category and may also generate a wider range of benefits for issuer countries, investors and the global financial system. The authors also examine the concerns and obstacles relating to the introduction of this instrument, suggesting that some may be exaggerated while others could be overcome. The paper calls for international public action to help develop markets for GDP-linked bonds and proposes a number of actions, some of which would require collaboration between Governments, multilateral development banks and the private sector.GDP-indexed bonds, cyclical vulnerabilities, issuers, investors, public good, international public action

National development banks and sustainable infrastructure; the case of KfW

This repository item contains a working paper from the Boston University Global Economic Governance Initiative. The Global Economic Governance Initiative (GEGI) is a research program of the Center for Finance, Law & Policy, the Frederick S. Pardee Center for the Study of the Longer-Range Future, and the Frederick S. Pardee School of Global Studies. It was founded in 2008 to advance policy-relevant knowledge about governance for financial stability, human development, and the environment.KfW was initially founded in 1948 to finance the reconstruction of war-torn Germany after World War II. The initial capital of the KfW was financed by Marshall Plan resources, provided by the US government. Additional expansions of capital have been basically funded from profits of KfW itself which reflects the efficiency with which it operates, and the high commercial, as well as developmental, quality of its loans. KfW has expanded significantly over the years, both in Germany and internationally. It has become the second largest commercial bank in Germany. Its large scale and its function as a German government instrument to implement a clear energy strategy has allowed it to play a key role in Germany to finance major energy transformation in the country and one of the most important energy transformations in Europe (known as Energie wende).[TRUNCATED

3. The Costa Rican Debt Deal: Is Small Beautiful?

SUMMARY Stephany Griffith?Jones' paper examines the Costa Rican deal, reached in the context of the Brady Plan; this package has substantive debt and debt service reduction elements, with no ‘new money’ from the private banks. The paper examines the particular features of Costa Rica. (such as the total small size of its debt and its geo?political importance to the US), which, together with the government's bargaining skills, seems to explain the high quality of the package. RESUME L'article de Stephany Griffith?Jones étudie le marché de Costa Rica, dans le contexte du Plan Brady; ce marché a des dettes importantes et comprend des éléments d'un système de réduction de dettes, sans “nouvelles finances” provenant des banques privées. L'article étudie les caractéristiques particulières de Costa Rica (telles que la petite taille de son déficit et son importance géo?politique pour les Etats?Unis), qui, avec les talents du gouvernements en matière de négotiations semblent expliquer la haute qualité de ce marché. RESUMEN El artículo de Stephany Griffith?Jones examina el caso de Costa Rica en el contexto del Plan Brady. Este paquete tiene elementos de substancial reducción de la deuda y de su servicio, sin “dinero nuevo” de los bancos privados. Analiza las características particulars de Costa Rica, tales como el pequeño volumen del total de la deuda y su importancia geopolítica para los Estados Unidos, lo que junto con la capacidad negociadora del gobierno parecen explicar la alta calidad del paquete

Is the Brady Plan an Effective Approach to Dept Management?

summary This article briefly describes the Brady Plan, as well as the background to its emergence. It then evaluates the role which regulatory and fiscal managements have in influencing debt reduction, and proposes that fiscal arrangements — in Europe and Canada — be modified to encourage more effective debt reduction. Résumé Le Plan Brady est?il une façon efficace d'aborder le problème de la gestion des dettes Cet article décrit brièvement le Plan Brady, ainsi que les antécédents de sa naissance. L'article examine également quelle influence ont les institutions en matière de légalité et fiscalité dans la réduction des dettes, et propose que des mesures fiscales, en Europe et au Canada, soient modifiées afin d'encourager une plus grande réduction des dettes. Resumen ¿Constituye el Plan Brady un enfoque efectivo para el manejo de la deuda? Este artículo describe brevemente el Plan Brady, así como el trasfondo que permitió su creación. Evalúa luego el rol que tienen los manejos regulatorios y fiscales para influir en la reducción de la deuda, proponiendo que los arreglos fiscales — tanto en Europa como en Canadá — sean modificados para estimular más efectivamente la reducción de la deuda

B. The New Bank of England Rules for Provisioning

SUMMARY Stephany Griffith?Jones' article presents in some detail the new 1990 Bank of England matrix, which provides detailed rules for British banks' provisioning against possible Third World losses. RESUME L'article de Stephany Griffith?Jones présente en détail la nouvelle matrice de 1990 de la Banque d'Angleterre, qui fournit des règlements détaillés en ce qui concerne l'approvisionnement de capitaux utilisés en cas de pertes financières éventuelles du Tiers Monde. RESUMEN El artículo de Stephany Griffith?Jones presenta, con algún detalle, la nueva matriz del Banco de Inglaterra de 1990, la que proporciona normas pormenorizadas de previsión para los bancos británicos frente a posibles pérdidas del Tercer Mundo

Debt Relief for Child Development

SUMMARY Stephany Griffith-Jones' article examines the donations of Sudanese debts to UNICEF by Midland and other banks, and their use by UNICEF to expand its spending on clean water and reforestation projects in Sudan. The article also examines a new Inter?American Development Bank/UNICEF scheme for swaps in Latin America. RESUME Une baisse du déficit pour le développement des enfants L'article de Stephany Griffith?Jones examine les donations faites à l'UNICEF par la Banque “Midland” et d'autres banques au Soudan, et l'utilisation qu'en fait l'UNICEF pour élargir sa participation à installer l'eau potable et à des projets de reboisement au Soudan. L'article fait également l'étude d'un projet de développement inter?Americain banque/UNICEF pour un échange de dettes contre développement en Amérique Latine. RESUMEN Alivio de la deuda para el desarrollo de la infancia Este artículo examina las donaciones de la deuda sudanesa hecha por el Midland y otros bancos a UNICEF y el uso que esta institución ha hecho para expandir sus gastos en proyectos de agua potable y reforestación en Sudán. También analiza un nuevo esquema UNICEF/Banco Interamericano de Desarrollo para el enroque deuda/desarrollo en América Latina