Forgive Debt, but Keep Lending
Cancelling of poor-country debt does not mean that the best way to give aid is through grants only. Aid through loans may often prove superior, provided that it maintains debt sustainability. A new scheme for soft loans is suggested, with higher interest rates and cancellation provisions if bad shoc...
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| Other Authors: | , |
| Format: | eBook |
| Language: | English |
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Paris
OECD Publishing
2007
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| Series: | OECD Development Centre Policy Insights
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| Online Access: | |
| Collection: | OECD Books and Papers - Collection details see MPG.ReNa |
| Summary: | Cancelling of poor-country debt does not mean that the best way to give aid is through grants only. Aid through loans may often prove superior, provided that it maintains debt sustainability. A new scheme for soft loans is suggested, with higher interest rates and cancellation provisions if bad shocks occur, to minimise moral hazard and strengthen debt sustainability |
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| Physical Description: | 2 p. 21 x 29.7cm |