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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Bibliographic Details
Main Author: Cohen, Daniel
Other Authors: Jacquet, Pierre, Reisen, Helmut
Format: eBook
Language:English
Published: Paris OECD Publishing 2007
Series:OECD Development Centre Policy Insights
Subjects:
Online Access:
Collection: OECD Books and Papers - Collection details see MPG.ReNa
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246 2 1 |a Annuler la dette ? Oui. Renoncer aux prêts ? Non 
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520 |a 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