Beyond Aid: How Much Should African Countries Pay to Borrow?

WPIEA2010140 Image
Price:  $18.00

Author/Editor: Cheikh A. Gueye, Amadou N. R. Sy
Release Date: © June, 2010
ISBN : 978-1-45520-123-5
Stock #: WPIEA2010140
English
Stock Status: Available

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Description

Post debt relief, the number of African countries considering accessing international capital markets, often to fund large infrastructure projects, is increasing. Potential risks of capital inflows are well known but the literature offers little help to estimate the cost of borrowing internationally for the first time. This paper proposes a two-step approach to estimate the sovereign credit rating and interest rate cost of a country considering borrowing externally. Estimates can be used to assess the costs and benefits of different financing options. The method can also be used to construct foreign currency as well as domestic local currency yield curves.

Taxonomy

Debt , Economic policy , Fiscal policy , International capital markets , International financial system




More publications in this series: Working Papers


More publications by: Cheikh A. Gueye ; Amadou N. R. Sy