摘要：A menu-based debt-reducing deal is a concerted agreement between a debtor and its creditors on a set of financial options the creditor banks can freely choose from. The novelty and complexity of the menu-based debt reduction deals make it difficult to see the economic principles that underlay them. This papaer explains and analyzes the main elements of a menu -buyback, debt exchange; and new money, and how they interact in determing the aggregate choice of banks. We also discuss the important effects of the source of funding the debt reduction. The paper emphasizes that the provision of new money in a menu is best seen as a concession by non-exiting creditor in exchange for the value increase of their existing debt on account of the debt reduction. The set of best possible combinations of debt reduction and new liquidity the country can bargain for with its commercial creditors in a Bradv deal is identified. We also indicate how a country can best choose between these possible combinations.
