Adoption of an IMF Programme and Debt Rescheduling: An Empirical Analysis

Development Studies Working Paper No. 152

31 Pages Posted: 8 Nov 2001

See all articles by Silvia Marchesi

Silvia Marchesi

Università degli Studi di Milano-Bicocca - Department of Economics, Management and Statistics (DEMS); Università degli Studi di Milano-Bicocca - Center for European Studies (CefES); University of Milan - Centro Studi Luca d'Agliano (LdA)

Date Written: May 2001

Abstract

The existence of an empirical relationship between the adoption of an IMF programme and the concession of a debt rescheduling by commercial creditors is tested using a bivariate probit model. If countries who have arrangements with the IMF are more likely than others to obtain a rescheduling of their external debt we could conclude that the adoption of an IMF programme could work as a sort of signal of a country's "good willingness", which is thus rewarded with the debt relief. The results confirm the existence of a significant effect of the adoption of an IMF programme on the subsequent concession of a debt rescheduling by creditors.

Keywords: IMF Conditionality, Debt Rescheduling, Bivariate Probit

JEL Classification: F34, C35

Suggested Citation

Marchesi, Silvia, Adoption of an IMF Programme and Debt Rescheduling: An Empirical Analysis (May 2001). Development Studies Working Paper No. 152, Available at SSRN: https://ssrn.com/abstract=288800 or http://dx.doi.org/10.2139/ssrn.288800

Silvia Marchesi (Contact Author)

Università degli Studi di Milano-Bicocca - Department of Economics, Management and Statistics (DEMS) ( email )

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Italy
+39 02 64483057 (Phone)

HOME PAGE: http://https://sites.google.com/site/ssilviamarchesi/home

Università degli Studi di Milano-Bicocca - Center for European Studies (CefES)

University of Milan - Centro Studi Luca d'Agliano (LdA)

Via P. Amedeo 34
Milano, Mi 20122
Italy

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