Kazemi, Hossein S.2023-06-162023-06-1620080197-42541573-9678https://doi.org/10.1007/s11293-008-9112-3https://hdl.handle.net/20.500.14365/971A present-value model of less developed countries' (LDC) debt is developed to understand the factors that affect the discount on the secondary market. LDC debt trades at a substantial discount on the secondary market. This paper investigates the determinants of the discount for a sample of 13 countries over a 9 year period. The findings show that debt-exports, foreign currency reservesimports and total debt service to exports ratios are significant determinants of the secondary market prices of LDC debt. The discount is higher in countries where debt-exports ratios are higher and is lower for those with lower foreign currency reserves-imports ratios. Concentration of debt with money center banks has a positive and significant effect on the secondary market price of debt.eninfo:eu-repo/semantics/closedAccessDebt defaultFixed-effectsLDC debtSecondary market pricesArticle10.1007/s11293-008-9112-32-s2.0-44649134641