This paper is based on an earlier paper, “Realignment of debt service obligations and ability to pay in concessional lending: feasibility and modalities” which was commissioned by the World Bank.

By Prof. Christopher L. Gilbert, Prof. Alexandra Tabova

Summary:

• Abstract

• Introduction

• Objectives, Instruments and Scope

• Financial Structure

• Commodity Swaps

• Commodity Swaptions

• Oil Imports

• The Commodity Price Trend

• Offsetting

• Simulations

• Welfare Analysis

• Simulation Results

• Simulated Impact on Creditor Institutions

• Discussion

• Basis Risk

• Quantity Variation

• Conclusions

• Appendix: Social Welfare and Detailed Results

• References

• Book Related