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Title: |
International Loan to Developing Countries as a Risk Sharing Contract |
| Author: |
Kang,
Cheol-Joon |
| Author
Affiliation: |
Bank Korea |
| Source: |
International Economic Journal, Summer 1988, v. 2, no. 2, pp. 75-81 |
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Publication Date: |
Summer 1988 |
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Abstract: |
This paper presents an alternative
interpretation of international loan contracts signed by international
banks and borrowers from developing countries, emphasizing a risk
sharing feature between lenders and borrowers under a situation that
banks can not flexibly change the lending volume or the relationship
with borrowers. Its main implication is that bank efforts to shift risk
more to borrowers may cause unstable loan repayment by borrowers. |
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