Bolivia´s external debt burden

The World Bank and IMF announced that they will forgive total amounts of external debt to several countries inside the HIPC initiative, being Bolivia one of these countries. In this book we analyse if Bolivia really needs to receive this debt relief or can repay its external debt by itself. First, we discuss if it is convenient for a country to receive aids as debt relief. Second, we explain Bolivia's actual situation and we apply two solvency models to it: Simonsen's dynamic model and the Analytical model. In this way we see if the country is solvent enough to handle a sustainable external debt. According to the results that we get in this research we conclude that it is neither neccesary nor convenient for Bolivia to receive debt relief.

Autorentext

Estibaliz Astaburuaga and Oroitz Lafuente, Business Economics at Deusto University. Master in Finance and International Business at Aarhus School of Business. Estibaliz Astaburuaga, Auditor at Deloitte, S.L., San Sebastian. Oroitz Lafuente, Auditor at Deloitte, S.L., Bilbao (2007-March 2010), Controller at Cie Automotive Group, Vitoria.