Sovereign debt , Financial Management

Sovereign debt is a debt instrument guaranteed by the government. The other names for sovereign debts are sovereign bonds or government bonds. They are issued in the currency of the issuer's country. 

Under the doctrine of sovereign immunity, creditors cannot force repayment of sovereign debt. It is subject to compulsory rescheduling, interest rate reduction, or even repudiation. The only protection available to the creditors is the threat of loss of credibility and lowering the sovereign debt rating at the international level. This remedy, if applied, makes the sovereign more difficult to create debt in the future.  

Posted Date: 9/8/2012 7:18:49 AM | Location : United States







Related Discussions:- Sovereign debt , Assignment Help, Ask Question on Sovereign debt , Get Answer, Expert's Help, Sovereign debt Discussions

Write discussion on Sovereign debt
Your posts are moderated
Related Questions
What is an agent? What are the responsibilities of an agent? An agent is a person who has the actual or implied authority to act on behalf of another.  The owners whom the agen

The annual report and accounts for Astra Zeneca plc and Epistem Holdings plc and other relevant financial information are available in the ‘TMA 02 Resources folder' in the Assessme

The minimum value is the lower limit for the market value of a convertible bond. It is equal to the greater of the conversion value and the straight value. We can

In how many area ratios are grouped Ratios can be grouped into 3 main areas: 1 Performance - how well business has done (profitability) 2 Position - short term standing

Expalin the basic concept of financial management and Cost of Retained Earnings and External Equity??? Also explain the hoe can ew calculate the external equity? Help me

Factors of Importance of returns in any investment Importance of returns in any investment decision can be traced to the following factors: It enables investors to

a) Sponsorship - refers to monetary gifts or donations in support of a business or an event venture in return for a dominant display of the sponsor's name. In this case, FC Barcelo

The financial manager of A ltd.co. expects that its EBIT in the current year is 10,000. The firm has 5% Deb. Amounting to Rs. 40,000., while 10% Pref. Share amounts to Rs. 20,000.

Q. What is Commercial Papers? Commercial Papers: Commercial papers (CPs) are short-term, unsecured securities issued by highly creditworthy large companies. They are issued wit

It is argued that VC & PE houses achieve superior returns through ruthlessly focussing management on short to medium term outcomes. In particular, parsimonious cash management is g