ABSTRACT
The International Debt Crisis brought with it an increased frequency in countries experiencing problems with repayments of their international debt and seeking rescheduling with their creditors. This made it imperative for creditors, both current and potential, to establish an efficient system of monitoring sovereign debtors. The search for workable early warning systems of debt-servicing problems has been the subject of much research in the literature (see, for example, Saini and Bates [1984], and the papers cited therein; Taffler and Abassi [1984]; McFadden et al. [1985]; Morgan [1986]; Hajivassiliou [1987]). 1
