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Interwar Romanian sovereign bonds: the impact of diplomacy, politics and the economy1

Published online by Cambridge University Press:  06 July 2012

Kim Oosterlinck  and
Loredana Ureche-Rangau
Kim Oosterlinck
Affiliation:
Université Libre de Bruxelles, SBS-EM Centre Emile Bernheim, koosterl@ulb.ac.be
Loredana Ureche-Rangau
Affiliation:
Université de Picardie Jules Verne, CRIISEA, Amiens, loredana.ureche@u-picardie.fr
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Abstract

Sovereign debts differ from other financial instruments because repayment ultimately depends on the issuers' willingness to pay. In turn, willingness to pay may be influenced by political, diplomatic or economic considerations. Based on an original database of Romanian bonds traded in Paris, this article shows that international diplomacy played an important role in the Romanian debt valuation.

Keywords

Sovereign debtsbond pricingRomaniaFranceemerging marketsdefaultN24F34G15
Type
Articles
Information
Financial History Review , Volume 19 , Issue 2 , August 2012 , pp. 219 - 244
Copyright
Copyright © European Association for Banking and Financial History e.V. 2012

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