Debt swap

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Debt swap

A set of transactions in which a firm buys a country's dollar bank debt at a discount and swaps this debt with the central bank for local currency that it can use to acquire local equity. Also called a debt-equity swap.
References in periodicals archive ?
They refused discounted debt swaps to restructure most of the $100 billion the country defaulted on in 2001.
Argentina had been prevented from making payments to any holders of bonds issued in debt swaps in 2005 and 2010 under a court ruling.
Policy-makers and educationists have urged governments to adopt innovative funding methods like issuing global bonds, debt swaps, credits, vouchers, besides renewed commitment from traditional donors, for achieving the goal of Education For All (EFA), the most important component of the Millennium Development Goals (MDGs), by 2015.
All debt swaps were implemented at a discount rate of 50 percent.
Panama's proficient debt management has also reduced the outstanding debt stock and improved the debt profile through various debt swaps and buyback operations.
It is extremely rare these days that issues of any moment are seriously debated and resolved in the official meetings but, in countless bilateral meetings, future bond transactions, debt swaps, trade facilities and the like are conducted to benefit of both sides.
At about this time, our article "Fiscal Alchemy: Transforming Debt into Research" (Issues, Fall 1991) sought to highlight three issues: 1) the pressing need for scientific partnerships between the United States and industrializing nations, 2) the mechanism of bilateral or multilateral foundations for funding such partnerships, and 3) the device of debt swaps for allowing debtor nations with limited foreign currency reserves to act as full partners in joint research ventures.
Par-for-par debt swaps, on the other hand, remained nontaxable until the 1990 Omnibus Budget Reconciliation Act, which was motivated by some sizable swaps earlier that year (see Kalotay and Tuckman, 1992).
Although it is not a panacea for the country's debt burden - estimated at over five billion dollars - the debt swaps have provided Madagascar with the resources with which to fund conservation programmes.
Consistent with his unusually broad financial background, Marron has held a wide range of positions within Real Estate Finance, including debt swaps with REIT's, direct debt, and the acquisition of performing and non-performing debt pools.
It will include offerings in Cap & Trade (if approved), Collateralized Debt Obligations, Commercial Loan Portfolios, Credit Card Debts Portfolios, Credit Default Swaps, Foreign Debt Swaps, Industrial Development Bonds, Limited Partnership Interest, Mortgage-backed Bonds, Mortgage-Backed Securities, Notes, Real Estate Investment Trusts, SBA Guaranteed Loans, State Guaranteed Loans, Tax Credits, Venture Capital Portfolios, and others.
Debt Swaps in Morocco -- What Implications for Sovereign