SOVEREIGN DEBT



…. During my 18 years as a financial journalist, dealing with international economic problems, and specifically with the problem of Third World debt, I have rarely encountered an individual with such a keen insight into the problems of Third World debt and the relationship of the ‘have and have not’ countries as Mr. Michaels …. Mr. Michaels’ unique ability to analyze complicated economic problems and to explain those problems in an acceptable fashion to the conservative regimes of the banking countries of the North and to the hard-pressed Third World regimes of the South, have made him a preeminent figure in the realm of Third World debt restructuring….

Gordon W. Platt
Financial Editor
The Journal of Commerce


22nd December, 1987:  EXCLUSIVE REPORT for The Journal of Commerce

BIG CLEARINGHOUSE WOULD BUY DEBT OF THIRD WORLD

Proposal for the registration and settlement of sovereign debt trades, and the settlement of public and private sector international trade and commerce, utilizing sovereign debt instruments. A central clearinghouse owned by the world’s banks could buy back Third World debt and invest in private-sector projects in developing countries on a massive scale.

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6th May, 1988: The Journal of Commerce

SOLUTION PROPOSED TO WORLDWIDE DEBT CRISIS

Commercial and multinational banks, industrial nations and less-developed countries all must share the pain of solving the global debt crisis.

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8th August, 1991: By David P. Michaels for The Journal of Commerce

“THE PRIVATIZATION OF SOVEREIGN DEBT”

Proposes a cost-effective alternative to (official) debt ‘forgiveness’ offering a package of incentives for economically stimulating low-risk LDC investment.

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“MULTINATIONALS’ BLOCKED CURRENCIES & THE LDC’S EXTERNAL DEBT: A ‘WIN-WIN’ COMPROMISE”


Examines and projects, using a specially developed financial model, the offset of ‘blocked currencies’ for partial debt reduction combined with investment incentives.

“THE UTILIZATION OF INSTRUMENTS OF SOVEREIGN DEBT IN COUNTERTRADE AND OFFSET NEGOTIATIONS”


Discusses the benefits of incorporating ‘debt-equity’ and ‘debt-currency’ swaps in countertrade and offset negotiations to enhance a ‘trade-led’ global economic expansion program.