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Public Debt Markets in Central America, Panama, and the Dominican Republic

Jobst, Andreas; Valderrama, Laura; Guerra, Ivan; Shah, … - International Monetary Fund (IMF) - 2007

This paper-consisting of a regional study and seven country studies-reviews the state of domestic public debt markets in Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua, and Panama as at end-2005. Although they account for the lion's share of capital markets, regional...

Persistent link: https://www.econbiz.de/10005825635

A Model of Sovereign Debt in Democracies

Alichi, Ali - 2008

This paper develops and empirically tests a political economy model of sovereign debt. The main incentive for repaying sovereign debt is to maintain access to international capital markets. However, in a democracy, one generation may choose default regardless of its consequences for future...

Persistent link: https://www.econbiz.de/10012677458

Are We Heading for Another Debt Crisis in Low-Income Countries? Debt Vulnerabilities: Today vs the pre-HIPC Era

Chuku, Chuku - 2023

There are growing concerns that 25 years after the launch of the HIPC debt relief initiative, many low-income countries are again facing high debt vulnerabilities. This paper compares debt vulnerabilities in LICs today versus those on the eve of the HIPC Initiative and examines challenges to a...

Persistent link: https://www.econbiz.de/10015059536

Sovereign Debt

Martinez, Leonardo - 2022

This paper surveys the literature on sovereign debt from the perspective of understanding how sovereign debt differs from privately issue debt, and why sovereign debt is deemed safe in some countries but risky in others. The answers relate to the unique power of the sovereign. One the one hand,...

Persistent link: https://www.econbiz.de/10015060335

Sovereign Debt Repatriation During Crises

Arslanalp, Serkan - 2022

We use a new, comprehensive data set on the sovereign debt investor base to document three novel empirical facts: (i) sovereign debt is repatriated - that is, shifted from external private to domestic investors - prior to sovereign defaults; (ii) not all crises are equal: evidence for...

Persistent link: https://www.econbiz.de/10015060461

Intertwined Sovereign and Bank Solvencies in a Model of Self-Fulfilling Crisis

Adler, Gustavo - International Monetary Fund (IMF) - 2012

Large fiscal financing needs, both in advanced and emerging market economies, have often been met by borrowing heavily from domestic banks. As public debt approached sustainability limits in a number of countries, however, high bank exposure to sovereign risk created a fragile inter-dependence...

Persistent link: https://www.econbiz.de/10010878417

Outlook for Interest Rates and Japanese Banksâ€™ Risk Exposures under Abenomics

Arslanalp, Serkan; Lam, Raphael W. - International Monetary Fund (IMF) - 2013

This paper examines how Japan’s long-term interest rates and Japanese banks’ interest rate risk exposures may evolve … yields in Japan are determined to a large extent by growth and inflation outlook, fiscal conditions, demography, and the … increased purchases by the Bank of Japan. At the same time, illustrative scenarios suggest the interest rate risk exposure of …

Persistent link: https://www.econbiz.de/10011142198

Consequences of Asset Shortages in Emerging Markets

Imam, Patrick A.; Chen, Jiaqian - International Monetary Fund (IMF) - 2012

We assess econometrically the impact of asset shortages on economic growth, asset bubbles, the probability of a crisis, and the current account for a group of 41 Emerging markets for 1995-2008. The econometric estimations confirm that asset shortages pose a serious danger to EMs in terms of...

Persistent link: https://www.econbiz.de/10010790419

Balance Sheet Vulnerabilities of Mauritius During a Decade of Shocks

International Monetary Fund (IMF); International … - 2010

After reviewing the economic reform strategy of Mauritius for the past 10 years in the face of several external shocks, we apply a balance sheet analysis (BSA) focusing on currency, maturity, and intersectoral mismatches. In reviewing developments over this decade, we find that the currency and...

Persistent link: https://www.econbiz.de/10008560418

The Eurozone Crisis; How Banks and Sovereigns Came to Be Joined At the Hip

Sandri, Damiano; Mody, Ashoka - International Monetary Fund (IMF) - 2011

We use the rise and dispersion of sovereign spreads to tell the story of the emergence and escalation of financial tensions within the eurozone. This process evolved through three stages. Following the onset of the Subprime crisis in July 2007, spreads rose but mainly due to common global...

Persistent link: https://www.econbiz.de/10009370546