Outstanding Debt Research Articles

Institution of insolvency (bankruptcy) of individual entrepreneurs: concept, evolution, legal nature and prospects development

Modern economic relations objectively need legal regulation of the procedure of termination of activities of those participants of turnover, who were unable to continue it due to deterioration of their property status. Due to the prevalence of participation of individual entrepreneurs in economic activity, they may also be among the insolvent subjects. These circumstances cause the need to study the specifics of insolvency (bankruptcy) of individual entrepreneurs, including in the context of forming the practice of application of the relevant legislation. Based on the analysis of the specifics of the legal status of an individual entrepreneur as a participant of property turnover, the purpose of legal regulation of insolvency (bankruptcy) of entrepreneurs, the conclusion is made about the possibility of singling out an independent institute of insolvency (bankruptcy) of entrepreneurs, institute of insolvency (bankruptcy) of an individual entrepreneur, it some principles are defined. When identifying the branch affiliation and place of this institute in the Russian legal system, it is defined as an arbitration-procedural legal institute. The peculiarities of the legal status of an individual entrepreneur also determine the necessity of fixing somewhat different approaches to the regulation of insolvency of these subjects compared to those that should be applied to ordinary citizens. The author concludes that it is necessary to fix as a general rule the obligation of the entrepreneur to repay the outstanding debt after the end of bankruptcy proceedings, as well as to establish the possibility to be released from this obligation only in a declaratory procedure.

Accounting documentation of the bankruptcy of Emperor Matthias of Habsburg in 1615: archival sources and research possibilities

ABSTRACT Based on archival research, this study presents a hypothesis that significantly changes the interpretation of the causes of the economic and political conflict in Bohemia in 1618. The results demonstrate that the deciding impulse was the uncontrollable indebtedness of the monarchy which resulted in a sovereign default (1615). The Bohemian Diet refused to guarantee the government bonds which resulted in their loss of value. Between 1615 and 1618, along with the fight for preservation of religious freedom, a strenuous fight for fiscal reform and control of economic resources was in motion. The creditors – European politicians, bankers and generals – wanted the monarch to take over Bohemia with force in order to be able to pay off the outstanding debts. The data regarding the monarchical credit crisis in Bohemia between 1615 and 1618 have not been analysed scientifically up to this point. In this study, the author presents the main documentary sources available on this issue to encourage further research and highlight the value of interdisciplinary dialogue.

No Time for Justice? Obstetric Violence, Damages Claims and Prescription Periods in South African Law

Obstetric violence is currently not acknowledged as a form of gender-based violence in South African law. In this article I deal with the various issues associated with this failure to correctly categorise obstetric violence. One of the issues relates to access to legal recourse for survivors through delictual claims (torts). Delictual claims are wrongful acts or limitations of rights that can lead to legal liability in the form of monetary compensation. The current framing of obstetric violence as medical malpractice limits women's time to launch a case to only three years after the violation. To show how this issue of prescription (a legal principle where an outstanding debt can be extinguished after a prescribed time period) plays out, I focus on the 2020 report by the South African Commission for Gender Equality (CGE) on the forced or coerced sterilisation of women living with HIV at state healthcare facilities. I also examine the current case of the Centre for Applied Legal Studies (CALS), a university-based human rights law clinic, which represents over 40 women who have experienced different forms of obstetric violence at state-run facilities. In both of these examples, I explain how justice through legal recourse is denied to these victims or survivors through the mischaracterisation of obstetric violence as medical malpractice in current South African law. To show that the three-year ‘limit’ or prescription period to institute a legal claim is unjustifiable, I explore three reasons why women may not choose to or be able to proceed with a legal claim within that time period. The first of these relates to the ‘personal’ barrier women face around acknowledging they have experienced obstetric violence and bringing a claim against the state. The second, the ‘political’ barrier, includes the general and prevalent systemic gender discrimination experienced by women in South Africa and the specific barriers women face around access to dignified treatment in the country's public healthcare system. Finally, an ‘economic’ barrier is the general inaccessibility of legal representation for economically disadvantaged people in the country. Proceeding from the above, I then argue that by acknowledging obstetric violence as a form of gender-based violence and aligning it with legislation around prescription periods for other forms of gender-based violence (such as sexual offences), the burdens related to access to justice (at least in delict) can be lightened for survivors.

30 Years of Macroeconomic Effects in Zambia-VECM, ARDL & IRF Approaches

Purpose: This study examines the impact of selected time series macroeconomic variables on Zambia’s economic progress for thirty (30) years (1992 to 2022) Methodology: The study employs the autoregressive distributed lag (ARDL), vector error correction models (VECMs) and the impulse response functions (IRFs) approaches. Findings: The VECM regression estimates indicate that in the long-run, ceteris paribus, a 1% increase in inflation and population growth rates cause a significant positive impact on economic progress of 0.36% and 0.68 % respectively whereas the total public debt stock causes decrease in economic growth of 0.45%. The ARDL long-run regression estimates indicate that ceteris paribus, a 1% increase in inflation and public debt significantly reduces real GDP by 0.2% and 0.03%, respectively, but a 1% increase in population growth rate increases real GDP by 23.11%. The IRF estimates show that a negative shock to the real GDP causes a mildly negative effect on the inflation rate, causes a significant positive increase in the population growth rate, which dissipates after 9.5 years and causes a significant positive increase in public debt, which dissipates after 10 years. Unique Contribution to Theory, Policy and Practice: Therefore, the study recommends that the Zambian government should prioritize repayment of the outstanding public debt by bringing down the debt-to-GDP ratio to sustainable levels, adhering to prudent public financial management and continuing to grow the domestic revenue base. The policies to promote population growth should be pursued cautiously because rapid population growth rates could erode the future economic growth prospects of Zambia.

Inframarginal Borrowers and the Mortgage Payment Channel of Monetary Policy

Despite the widespread use of fixed-rate mortgages in the United States, I show that monetary policy is effectively passed through to aggregate outstanding mortgage debt service. Using credit bureau, lender, and servicer data on mortgage payments and originations and exogenous monetary policy shocks, I estimate a mortgage rate semi-elasticity of payments over 10. Inframarginal borrowers---households whose choice to buy a home or refinance does not depend on the particular monetary policy decision under consideration---are the most important conduit, explaining over half of the pass-through. Consistently large flows of inframarginal borrowing relative to the stock of outstanding debt account for the strength of this channel. Households with adjustable-rate mortgages and marginal refinancers, the focus of much of the literature on monetary policy's effect on mortgage borrowers, each explain about 20 percent of the pass-through. I show the mortgage payment channel induces a lag in the operation of policy, as the cumulative effects on debt service build over time in response to persistent shocks to longer-term rates. Estimated magnitudes suggest that mortgage payments are a primary channel by which monetary policy affects consumption.

Macroprudential policy effectiveness and interaction with monetary policy: Lessons from debt service-to-income cap implementation in Kazakhstan

We take advantage of the early adoption of the debt-service-to-income cap (DSTI) measure in Kazakhstan, as well as available granular information from the local credit registry to study the effects of macroprudential instruments on core financial stability parameters. Our results show that implementation of a DSTI cap of 50 % leads to around a 9 % decrease in 12 months in the amount of outstanding debt on average for the range of credits originated just around the introduction of the DSTI cap. We find that DSTI cap implementation decreased the probability of delinquency rates of loans by about 20 % in 12 months on average compared to credits granted before the realization of the DSTI cap. We provide evidence on the importance of loan size heterogeneity across time when estimating the impact of macro-prudential intervention, which is partly overlooked in the existing literature. Finally, our results suggest that macroprudential and monetary policy tools can be complementary depending on the specific business cycle developments.

Enhancing sustainable waste management in Raja Ampat: Assessing the waste bank model's effectiveness in the face of socioeconomic challenges

Background: This study investigates the execution and obstacles of waste management in Raja Ampat Regency using the Bank Sampah mechanism, which has been in operation in Waisai City since 2013. The research findings indicate that the primary challenges in the administration of Bank Sampah in Raja Ampat are the recurring turnover of management, resulting in outstanding debts to customers and a significant reliance on support from the local government. Furthermore, the waste segregation method has not been well executed, and the primary incentive for community participation is of the financial kind. Methods: This study employed qualitative approaches to evaluate the efficacy of the Waste Bank model in Raja Ampat Regency. The study was carried out for a duration of six months, specifically from January to June, in Waisai City, which serves as the hub for waste management and tourism endeavors. Findings: Nevertheless, Bank Sampah continues to be the most efficient waste management approach in Raja Ampat Regency. This study suggests implementing enhanced management practices and providing ongoing coaching, along with fostering greater collaboration between the Environmental Agency and pertinent government departments, in order to enhance community engagement. Conclusion: It is suggested that educating people about the significance of waste segregation and engaging the Government Bank as a custodian of consumer funds are further steps to enhance efficiency. The objective of this research is to offer practical assistance to local governments and other stakeholders on how to adopt waste management strategies that are both more effective and sustainable in tourism zones. Novelty/Originality of this Study: The novelty of this study lies in its focus on the implementation and challenges of the Waste Bank model in Raja Ampat, a region heavily impacted by tourism and population growth. By highlighting the unique socio economic hurdles and the importance of community engagement, this research provides practical insights for enhancing sustainable waste management in similar tourism-dependent areas.

Why cartel participation leads to financial statement fraud and market abuse

ABSTRACT In an attempt to hide from the competition authorities colluding firms risk committing financial statement fraud and market abuse. When colluding managers set the conditions for their cartel the resulting increase in profitability and ability to pay outstanding debt enables the firms to attract more investors, get access to larger loans and at a lower interest rate. The natural reluctance to disclose the firm’s cartel participation creates financial reports with misleading content, increases the likelihood of insider dealing and the ability to attract more funds diverts needed capital from otherwise more eligible firms and will endanger the integrity and efficient functioning of the financial markets. The conclusion is that firms and individuals involved in cartel offences should be investigated for financial statement fraud and market abuse although when persons may be subject to criminal sanctions it will decrease the attractiveness for individuals to use the leniency framework.

China, the IMF, and Sovereign Debt Crises

Abstract The rise of China as a major bilateral lender has transformed the financial landscape for developing countries and, consequently, the process of resolving debt crises. We examine how China’s loans impact the response of the International Monetary Fund (IMF) to countries in debt distress. We argue that China’s lending approach and its absence from creditor forums, notably the Paris Club, can complicate the IMF’s efforts in managing debt crises. When China is a major lender, the IMF cannot rely on the Paris Club to coordinate bilateral creditors, and concerns about coordination, free-riding, and borrowers’ outside options can make it more difficult to agree on an IMF program. Therefore, we expect that countries that have borrowed more from China will undergo more protracted negotiations with the IMF in a debt crisis. We test our argument using data on the number of negotiating trips by IMF staff to borrowing countries to prepare IMF loans from 2000 to 2019. We find that countries with higher levels of outstanding debt to China require a greater number of IMF negotiating trips if they are in debt distress at the time. Our findings highlight the impact of Chinese lending on the sovereign debt regime and contribute to debates about China’s engagement with multilateralism.

Household debt and financial vulnerability: empirical evidence for Spain, 2002–2020

The aim of this paper is to analyse the evolution of Spanish households’ indebtedness and financial vulnerability over the course of this century using micro-data from the Household Finance and Consumption Survey. Our results show a growing debt participation of Spanish households and an increase in the stock of outstanding debt of indebted households, a trend that reversed with the end of the Great Recession. Moreover, the percentage of financially vulnerable households according to three indicators grew dramatically until the end of the downward phase of the last economic cycle and showed considerable signs of improvement during the second half of 2010s. These results, nonetheless, call attention to the number of Spanish households being unable to service their debts in the face of an economic downturn.

Fiscal Dominance and the Effectiveness of Monetary Authority in Nigeria 1980-2020

The study examined the existence as well as the degree of fiscal dominance in Nigeria. Annual time series secondary data for the period 1980-2020 were employed in the study. Specifically, data on fiscal deficit, public debt, government expenditure, money supply, interest rate, and real Gross Domestic Product (GDP) for the study period were obtained from the Central Bank of Nigeria (CBN, 2020), and the World Development Indicators (WDIs, 2020). The study used descriptive statistics in form of tables, and the Dynamic Ordinary Least Squares (DOLS) for long run analysis. It was established in the study that government expenditure and outstanding debt have significant positive relationship with money supply. Specifically, N1 billion increase in public debt is expected to increase money supply by N1.2 billion (t = 8.25, p < 0.01). Similarly, N1billion increase in government spending will cause money supply to increase by N1.36 billion (t = 4.29, p < 0.01). Conversely, interest rate exhibited negative effect on money supply, such that one percent increase in interest rate will bring money supply down by 150 percent (t = -2.0113, p < 0.05). With a measure of fiscal dominance with the δ of 0.28, the study concluded that there is no case of fiscal dominance in Nigeria. The study recommends that with the active counterbalancing roles of monetary policy Nigeria, the government can aggressively pursue and sustain economic growth through fiscal expansion-backed borrowings and spending.

The effects of foreign investor composition on Colombia's sovereign debt flows

Assessing the composition of sovereign debt holders is important because investors' behavior varies according to distinctive components, including shareholders' preferences, regulatory constraints, and profitability mandates. To study this issue, we examine the determinants of offshore investments of mutual funds and pension funds, which concentrate Colombia's outstanding sovereign debt. Our results indicate that mutual funds exhibit considerable sensitivity to shocks in global factors, such as the Federal Funds Rate, sovereign risk, and the composition of financial indices. This contrasts with findings among pension funds, for which we detected a lower sensitivity to these factors, underlining the differences in foreign investor behavior that can impact sovereign debt flows within emerging markets.

Origins of US Inflation

Measuring fiscal pressure on inflation by the ratio of the primary deficit to the outstanding federal debt, this paper traces its growth through the 1970s, along with the shifts in the politics of deficits. There are thought-provoking parallels to the pandemic-era deficits and the subsequent inflation.

Stress Testing the Corporate Debt Servicing Capacity: A Scenario Analysis

The total volume of outstanding debt issued by U.S. nonfinancial firms relative to GDP has increased by about 8 percentage points in the past decade. While a growing volume of debt was largely viewed as benign in the low interest rate environment of the 2010s, the rapid increase in both short- and long-term rates since early 2022 has raised concerns about the debt-servicing capacity of the corporate sector.

High Risk, Constrained Return: Impact of Student Loans on Agricultural Real Estate

A farming household’s decision to continue producing agricultural commodities within the United States is influenced by a multitude of factors. Thus, this study seeks to examine whether the outstanding student loan balance of any member within a farming household may explain why the total number of acres devoted to the production of agriculture in the United States continues to decline. Panel data from the 2007–2009 Survey of Consumer Finances are analyzed via a fixed effect model to estimate the effect of outstanding student loan balances on farmland acreage owned, controlling for other factors like farm income, debt, and land prices. The results suggest that for each additional dollar of outstanding student loan debt, there is an associated decrease of 0.0064 acres in total farmland ownership. This suggests that student loan debt may also be a factor in the decline in real estate devoted to agriculture production. The estimated effect is both economically and statistically significant. This study contributes to the literature on the risks and constraints associated with farming households that own or seek to procure additional acres of agricultural producing real estate.

Fiscal institutions and racial equity: Determining the price of water

AbstractMunicipal water utilities across the United States establish their own rate structures to cover operations, maintenance, depreciation, and outstanding debt repayment. Yet, little is known about how rates are determined to ensure equity and/or affordability. To identify sources of variation in residential drinking water rates, we examine municipalities in northeastern Illinois, 2015–2019. Controlling for water utility characteristics, billing structures, financial management, service quality, and demographic/socioeconomic factors, we find no statistically significant correlations between water rates and median household income or race when nonrevenue water from leaking infrastructure is considered, revealing relative racial equity in water pricing within these communities. A larger water distribution network, more water included in the base charge, and a greater number of months in the billing cycle are all associated with lower rates. Purchasing water through an individual or cooperative agreement, a greater proportion of nonrevenue water from leaking infrastructure, a higher minimum monthly base charge, and more revenue debt outstanding (while controlling for nonrevenue water) are all associated with higher rates. We also find a positive correlation between municipal sewer rates and drinking water rates that supports findings from prior research. Overall, our research aids in the development of public policy that ensures all households have access to affordable and safe drinking water to promote water equity and public health.

Income and Borrowing of Farmers in North-Eastern Region: Inferences from NSSO SAS 2013 and NAFIS 2017

Abstract: NAFIS was launched in 2016-17 as a national level survey that offers, after NSSO SAS 2013, a comprehensive overview of the farmer’s behaviour in terms of income, earning sources, borrowing and indebtedness. NSSO 70th round of 2012-13 revealed many aspects of Indian farmers of which many parameters were covered by NAFIS. By employing these two surveys, the paper attempts to answer what are the changes that have taken place from 2013 to 2017 in terms of income and indebtedness of farmers in Northeastern region (NER) of India. Non-farm business income has seen large change in most of the states of the region with all NE states having higher average than the national average in 2017. The comparative analysis of SAS 2012-13 and NAFIS 2016-17 indicates that NER has improved a lot in terms of income and borrowing of agriculture households, however, changing scenario indicates income growing is inadequate, borrowing is low and outstanding debt has expanded rapidly. Large presence of subsistence agriculture, unregulated markets, negligible Agricultural Marketing Committees, lack of implementation of Minimum Support Price (MSP), low credit absorptive capacity, absence of land laws in large areas, poor infrastructure and geographical isolation are some of the major pertinent issues in the region that made agriculture underdeveloped. However, the two reports may not comparable in complete sense, therefore, necessary adjustment in parameters and calculation have been made to have a comparative scenario and to draw inferences.

Sistem Pendukung Keputusan Pemilihan Debt Collector Berprestasi Di PT. Wahana Ottomitra Multiartha Medan Menerapkan Metode SMARTER

An outstanding debt collector must have presence, honesty, teamwork and achievement to improve the debt collector's performance. Problems in selecting outstanding debt collectors at PT. Wahana Ottomitra Multiartha Medan is an election team that finds it difficult to carry out elections quickly and accurately. The decision making technique in the SMARTER (Simple Multi-Attribute Rating Technique Exploiting Ranks) method is based on the theory that each alternative consists of a number of criteria that have values ​​and each criterion has a weight that describes how important it is compared to other criteria. Application of the Simple Multi-Attribute Rating Technique Exploiting Rank method for selecting outstanding debt collectors at PT. Wahana Ottomitra Multiartha Medan provides an accuracy of 23% using the relative standard deviation formula. It is hoped that to overcome this, a Decision Support System for Selection of Outstanding Debt Collectors at PT was built. Wahana Ottomitra Multiartha Medan Implements the SMARTER Method which will be designed using Visual Basic 2008 and using MySQL. In the Visual Basic design, a calculation and ranking process will be produced

Decisions Making Based on Numerous Factors Improves Financial Management

Abstract: Contemplating an organization's financial choices from an optimization standpoint is a common practice. When contemplating a lengthy duration, one must make decisions on the optimal financial framework and the optimal allocation of resources. The immediate priorities include mitigating the impact on cash flow, inventory levels, outstanding debts, accounts receivable, and existing obligations. Financial theory generally examines these possibilities from the perspective of finding the best answer. Researchers have proposed operations research approaches as prospective answers due to the optimality and problem-solving nature of these judgments. These methods have been introduced as effective solutions. This article explores the potential applications of multicriteria analysis in resolving practical issues related to financial decision-making.

Position and Trends of Resource Gap in Nepal

Nepal's budget shortfall stems from excessively high recurring expenses, constituting over 60% of the government's total spending. Conversely, capital expenses linger below 20%. This imbalance highlights an unfriendly stance towards growth in the budget deficit, necessitating reduction. This study has examined the position and trends of resource gap in Nepal for which the source of the data used in the analysis was secondary. The data has been collected for the period 1986-87 to 2021-22 from the Central Bureau of Statistics (CBS) under the National Planning Commission (series of GDP). Descriptive statistics and trend analysis is used for secondary data analysis. A Statistical Package for Social Sciences (SPSS) software was used for data analysis for the study. The results revealed that Nepal is facing huge resource gap because of inability to raise revenue in comparison with the growing expenditure. To finance this huge resource gap the government is taking loans – both internal and external. Net outstanding public debt is increasing significantly. Government efforts should be placed on the mobilization of domestic resources for financing regular and development expenditure because foreign loan may be a great burden to the future.