Resolving Nigeria's Debt Through a Discounted Buyback

Publication Date: April 2005

Publisher: Center for Global Development; Center for Global Development

Author(s): Todd Moss; Todd Moss

Research Area: Economics

Type:

Abstract:

Nigeria has $33 billion in external debt. The government has been trying unsuccessfully for years to cut a deal with creditors to reduce its external obligations but to date has only managed to gain non-concessional restructuring. The major creditors also have good reasons for wanting to seek a resolution, yet agreement has been elusive. Fortunately, there is a brief window of opportunity in 2005 to find a compromise that can meet the needs of both sides. This note briefly outlines a proposal for striking such a deal through a discounted debt buyback.