The evolving roles of the clubs in the management of international debt

Brown, R. P. and Bulman, T. J. (2006) The evolving roles of the clubs in the management of international debt. International Journal of Social Economics, 33 1: 11-32. doi:10.1186/1478-4491-4-11

Author Brown, R. P.
Bulman, T. J.
Title The evolving roles of the clubs in the management of international debt
Journal name International Journal of Social Economics   Check publisher's open access policy
ISSN 0306-8293
Publication date 2006-01-01
Sub-type Article (original research)
DOI 10.1186/1478-4491-4-11
Open Access Status Not yet assessed
Volume 33
Issue 1
Start page 11
End page 32
Total pages 22
Editor J.C. O'Brien
Place of publication UK
Publisher Emerald
Language eng
Subject C1
340213 Economic Development and Growth
340206 International Economics and International Finance
729999 Economic issues not elsewhere classified
Abstract Purpose - The regularity of default by countries on their sovereign debt has led to the establishment of a number of evolving institutions or "Clubs". These institutions' objective is to optimise the impact of imminent default or actual default on both international lending and borrowing. The purpose of this article is to discuss the informal institutions concerned with managing debt between national governments - the Paris Club, between governments and commercial banks - the London Club - and the currently ad hoc dealings with sovereign bonds. Design/methodology/approach - The Clubs' changing approaches through the increasing depth and number of international financial crises from the Latin American debt crises of the 1980s, the Asian financial crisis of the late 1990s and the circumstances of the ex-Soviet economies, plus the ongoing debt sub-Saharan African debt crisis are discussed. Findings - The shifts in the principles underlying the debt management system are manifest by the changing content of reschedulings, from simply deferring payments to actual reduction in their present value. Practical implications - The functioning of principles of comparable treatment of all creditors are discussed with respect to the growing need for a body representing bondholders' interests. Originality/value - The paper highlights the IMF's multiple and sometimes conflicting roles in the international financial system.
Keyword Financial institutions
Foreign debt
International finance
Q-Index Code C1
Institutional Status UQ

Document type: Journal Article
Sub-type: Article (original research)
Collections: Excellence in Research Australia (ERA) - Collection
2007 Higher Education Research Data Collection
School of Economics Publications
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Citation counts: Scopus Citation Count Cited 2 times in Scopus Article | Citations
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Created: Wed, 15 Aug 2007, 16:57:25 EST