@article{Giamiagi_Jr._1993, title={Domestic public bond’s debt: an alternative}, volume={13}, url={https://centrodeeconomiapolitica.org.br/repojs/index.php/journal/article/view/1321}, DOI={10.1590/0101-31571993-0713}, abstractNote={<p>This article develops arguments in favor of recomposing the time to maturity<br />of the domestic public bond’s debt and present calculations on the amount of tax required by different terms of payment of that debt, assuming that it is rescheduled. Two alternatives<br />are presented and evaluated. Alternative one offers a collateral for the principal owed and<br />calculates the flow of interest in relation to GDP during the repayment period, Alternative<br />two is based on making gradual and small down-payments to repay the old debt within a<br />new institutional framework. The interest rate in the two cases would fluctuate and be readjusted<br />each semester. Both alternatives yield a substantial alleviation of the interest burden<br />compared to the present policy. The main conclusion is that with a dollar long-term interest<br />rate similar to the ones observed in the international markets (about 8% a year) plus 2% of<br />country risk and a 3% a year GDP growth rate, the domestic public debt could be paid in 20<br />years if a yearly provision of only 0.7% of GDP is allocated to its payment. The calculations<br />also show that the required primary budget surplus would decrease to the range of 2.l% to<br />2.7% of GDP, facilitating the balancing of the budget.</p> <p><strong>JEL Classification:</strong> H63; E31.</p>}, number={2}, journal={Brazilian Journal of Political Economy}, author={Giamiagi, Fabio and Jr., Álvaro Antônio Zini}, year={1993}, month={Apr.}, pages={171-195} }