Debt/equity conversion

The intention of this article is to provide certain guidelines and experiences in an area that has been characterized by a good deal of complexity and confusion. Numerous business publications have presented the ease in favour of debt/equity conversion (DEC) programmes, usually from a simplified and orthodox macroeconomic perspective which justifies them in terms of the potentiai double benefit of both reducing the existing external debt (and therefore future debt service) and increasing investment (and therefore future growth) in struggling developing countries.