TY  - JOUR
AU  - Sachs,Jeffrey
AU  - Cohen,Daniel
TI  - LDC Borrowing with Default Risk
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 925
PY  - 1982
Y2  - July 1982
UR  - http://www.nber.org/papers/w0925
L1  - http://www.nber.org/papers/w0925.pdf
N1  - Author contact info:
Jeffrey D. Sachs
The Earth Institute at Columbia University
314 Low Library
535 West 116th Street, MC 4327
New York, NY  10027
Tel: 212/854-8704
Fax: 212/854-8702
E-Mail: sachs@columbia.edu

Daniel Cohen
ENS-CEPREMAP
48, Boulevard Jourdan
75014 Paris
FRANCE
E-Mail: no email available
AB  - This paper presents a theoretical model to describe the effects of default risk on international lending to LDC sovereign borrowers. The threat of defaults in international lending is shown to give rise to many characteristics of the syndicated loan market: (1) quantity rationing of loans; (2) LDC policies designed to enhance creditworthiness; (3) prevalence of short maturities on international loans; and (4) a prevalence of bank lending relative to bond-market lending
ER  -