Introduction
Welcome to a demonstration of the IMF Staff Product-Mix Auction proposed by IMF staff to restructure sovereign debt. This app was developed by Paul Klemperer, Edwin Lock, and DotEcon in collaboration with IMF staff. For any questions, please contact edwin.lock@kcl.ac.uk .
Background
Debt and repayment
Bidding instructions
Bid 1
Budget (share of total claim)
USD
Implied interest rate
Local currency
Bid 2
Budget (share of total claim)
USD
Implied interest rate
Local currency
Bid 3
Budget (share of total claim)
USD
Implied interest rate
Local currency
Bid 4
Budget (share of total claim)
USD
Implied interest rate
Local currency
Bid 5
Budget (share of total claim)
USD
Implied interest rate
Local currency
Bidder profiles
Debtor’s preferences
Below you can specify the debtor's willingness to issue some of the 2024 bonds in local currency. For example, a value of 135 implies that the debtor is indifferent between issuing $100 in a USD-denominated bond or 135 LCU in a LCU denominated bond. The graph shows the percentage of the 2024 bond that would be issued at the various rates, given the preferences expressed by bidders.