Version 1
: Received: 29 March 2021 / Approved: 31 March 2021 / Online: 31 March 2021 (12:05:53 CEST)
How to cite:
García-Santillán, A. Mathematical Models with Equations for Re-Conversion of Private Debt. Preprints2021, 2021030763. https://doi.org/10.20944/preprints202103.0763.v1
García-Santillán, A. Mathematical Models with Equations for Re-Conversion of Private Debt. Preprints 2021, 2021030763. https://doi.org/10.20944/preprints202103.0763.v1
García-Santillán, A. Mathematical Models with Equations for Re-Conversion of Private Debt. Preprints2021, 2021030763. https://doi.org/10.20944/preprints202103.0763.v1
APA Style
García-Santillán, A. (2021). Mathematical Models with Equations for Re-Conversion of Private Debt. Preprints. https://doi.org/10.20944/preprints202103.0763.v1
Chicago/Turabian Style
García-Santillán, A. 2021 "Mathematical Models with Equations for Re-Conversion of Private Debt" Preprints. https://doi.org/10.20944/preprints202103.0763.v1
Abstract
The current health crisis derived from COVID 19 has become a serious threat to humanity. The collateral effects related to economic aspects are affecting companies, workers and, of course, families in general. The problems of financial insolvency are frequently present in debtors who have contracted a debt with their creditor. Therefore, the objective of the study is focused on modeling a debt restructuring proposal, through three hypothetical scenarios in which the debt is reconvened when some documents have expired and others are yet to expire. In each of the scenarios, the mathematical model is designed and subsequently corroborated in an Excel spreadsheet. The predominant variables in the restructuring are the adjustment rates used to update the past due promissory notes and the discount rates of those promissory notes that have not yet expired, capitalizations, transaction costs and, if applicable, whether the debt is in foreign currency. In this case, it is converted to the local currency, then the spot exchange rate is used.
Keywords
debt; re-conversion; equations
Subject
Computer Science and Mathematics, Algebra and Number Theory
Copyright:
This is an open access article distributed under the Creative Commons Attribution License which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
