BACK GROUND OF THE STUDY
The term debt conversion is a debt management strategy which enable a debtor country to reduce it external debt burden by changing the character of its debt .the conversion can be in different forms .debt to equity or debt securitisation or debt equalization or debt capitalization ..debt to debt or redenomination of debt in total currency ..debt for good or exports ..debt for working capital ..debt to assets ..debt to quasiequity ..relenting ..debt for restricted use cash ..debt peso swap
Debt securitization or what is now known as ‘’debt equity swap ‘’is a form of debt conversion in which part or all of a country’s external public debt is converted into equity shares or securities in government or public owned comprises agencies and prostates and these are discounted to their present values because of their different maturity dates
Debt securitization is now a contemporary issue in developing country who at the peak of the world debt crisis, could not meet up with their external debt obligation and other who in the process trying to meet up with these obligation utilize between 25 and 45 of the annual foreign exchange earning in debt servicing .Nigeria for instance mapped out above 26 billion of the total 2000 annual expenditure for debt servicing
It can be recalled that the world debt crisis came to limited in august 2002 when Mexico and other Latin American countries like Chile .caste Rica Bolivia and brazil announced to the international monetary fund [lmf]international finance corporation [lfc] international development association [lda] and the international capital market [lcm] made up of the London and particles of creditor that they can not longer meet up with their external debt obligation .this development greatly affected different international markets ever since ;
The creditor ;after long research and consultation introduces the alternative which is debt conversion which before 2001 was restricted to Latin American counties and non Latin American counties like Philippines and turkey ;debt conversion scheme has recently gained wide acceptance in most destroy developing counties, securitisation is also a substitution of market oriented intermediation for institution based intermediation .theoretically it involves the establishment of financial services ,and can occur in two ways ,one .by banks acting as intermediary accepting deposits and advancing loans with some form of contractual agreement and secondly through trademarked where borrower sell debt contract some of which include commercial papers banker acceptance certificate of deposit chronotes etc
Securitization exists if the balance of advantage is against both borrowers and leader while the bank provide such service as monitory and controlling the market provide liquidity by being able to sell the securities against holding them and rate different to a borrower between securities and direct bank borrowing lies In the relative advantage accrued to lender of the liquidity of traded.
According to IMF document report Nigeria is one of the 5th most heavily indebted counties among the de3veloping counties who need one form of adjustment or the other in order to contain their debt problem according to it African today ower about 60 of the global debt with Nigeria accounting
It was based on the concept and relevance of this scheme to Nigeria economy and the slow rate of implementation of this scheme that made the researcher to have an indepth of debt study of debt securitization and its operational paradigms
OBJECTIVE OF STUDY
This stud does not aim at finding a new alternative to the Nigeria debt problem other than the existing one but expose the reader to different concepts and strategies of debt conversion as an alternation to the world crisis and the implementation of debt securitzation so in some developing
Can't find what you are looking for?
Call (+234) 07030248044.
OTHER SIMILAR ACCOUNTING PROJECTS AND MATERIALS
AN APPRAISAL OF THE IMPLICATION OF ELECTRONIC BANKING IN NIGERIA BANKS (A CASE STUDY OF ACCESS BANK)
CHAPTER TWO REVIEW OF RELATED LITERATURE Electronic banking in Nigeria has overtime been viewed by many especially economists as having a lot of implications on the economy of Nigeria and especially...Continue reading »
A CRITICAL ANALYSIS OF THE USE OF FINANCIAL STATEMENTS IN ASSESSING THE PERFORMANCE OF AN ORGANIZATION (A CASE STUDY OF FIRST BANK NIGERIA)
ABSTRACT The study was carried out to analyse how an organization performs making use of the financial statements with First Bank of Nigeria Plc serving as the case study. the study disclosed that th...Continue reading »
AN EVALUATION OF THE PERFORMANCE OF NIGERIAN STOCK EXCHANGE IN THE ECONOMIC DEVELOPMENT OF NIGERIA ( A CASE STUDY OF NIGERIAN STOCK EXCHANGE)
HISTORICAL BACKGROUND OF THE NIGERIA STOCK EXCHANGE IN THE ECONOMIC DEVELOPMENT OF NIGERIAN. The nigeria stock excahnge denoted by NSE is a government establishment where stocks are traded on a daill...Continue reading »
APPLICATION OF BUDGETS AND BUDGETARY CONTROL MEASURES IN A NON-PROFIT ORGANIZATION: A CASE STUDY OF APOSTOLIC CHURCH, DELTA
2.1 CONCEPTUAL FRAMEWORK A budget is can be defined by accountants as “a planned outcome to be generated and for the expenditure to ensure during that period and the capital to be employed to a...Continue reading »
ASSESSING BOOK-KEEPING PRACTICES OF SMALL AND MEDIUM SCALE ENTERPRISES IN CALABAR LOCAL GOVERNMENT AREA
ABSTRACT The economy of Nigeria cannot function properly or thrive without the micro, small and medium scale enterprises (SMEs). These small scale enterprises cannot function properly if they are not ...Continue reading »
ASSESSMENT OF ADEQUATE RISK RECOGNITION AND MANAGEMENT IN NIGERIAN INSURANCE COMPANIES (A CASE STUDY OF UNION ASSURANCE COMPANY, UYO)
THE CONCEPT OF RISK Risk has been the subject of study by different scholars over the years with several meaning and definitions. But the most accepted definitions are that of J.E Banister and P.A Baw...Continue reading »
What are looking for today?
THE IMPACT OF HUMAN RESOURCE PLANNING ON ORGANIZATIONAL PERFORMANCE
61,483 people found this useful
THE EFFECT OF SOCIAL MEDIA ON STUDENTS PERFORMANCE IN LEARNING LISTENING COMPREHENSION
48,019 people found this useful
TAX ADMINISTRATION IN NIGERIA: CHALLENGES AND PROSPECTS, A CASE STUDY OF LAGOS STATE BOARD OF INTERN...
42,374 people found this useful
THE EFFECT OF TREASURY SINGLE ACCOUNT ON THE ECONOMY OF NIGERIA
42,322 people found this useful
IMPACT OF SOCIAL MEDIA ON CONSUMER BEHAVIOR
39,296 people found this useful
CAUSES AND EFFECTS OF COMMUNICATION BREAKDOWN IN AN ORGANIZATION (A case study of champions’ brewe...
38,371 people found this useful