Cyclopedia Of Economics 1st edition


Emergency Borrowing Facilities



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7. Emergency Borrowing Facilities

IMF facilities under an arrangement


World Bank - emergency borrowing
Bilateral – USA
Bilateral – EU
Bilateral – Others
Rescheduling of foreign debt (Paris Club, London Club)

Donor Conferences



8. War Bonds (linked to foreign exchange or nominal)

War effort bonds – voluntary (firms with turnover above a certain amount are "encouraged" to purchase the bonds through tax incentives)


Patriot Bonds – compulsory (firms with turnover above a certain amounts are obligated to purchase the bonds and a percentage of all wages is paid with these bonds, or a fixed quota of bonds is purchased by each household according to the number of members of the household)
Deductions from salaries are used to purchase the bonds
Financial transactions tax is imposed to finance the war effort
Increases in VAT, excise, and other consumption taxes are introduced in order to finance the war effort

9. Budgeting

War budget items can be part of the current budget.


A separate, supplementary budget can cater to the financial needs of the war.
A War Fund can be established – separately managed and includes all the proceeds from war bonds, etc.




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