A trio of economists with the International Monetary Fund has published a paper detailing how to determine the sustainability of debt.
The article was authored by Sean Hagan, Maurice Obstfeld and Poul Thomsen, according to a report from Naftemporiki. Although the article discussed debt sustainability concerns, it only briefly mentioned the ongoing Greek debt and bailout issue.
The writing discussed cases such as in Ukraine where creditors agreed to major cuts in order to make debt more sustainable.
The authors covered two main methods used to determine debt sustainability: low GDP-to-debt ratios and loans with long maturity tied to a low interest rate.
