Download or read book Debt Maturity and the International Financial Architecture written by Mr.Olivier Jeanne and published by INTERNATIONAL MONETARY FUND. This book was released on 2004-07-01 with total page 33 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper presents a theory of the maturity of international sovereign debt and derives its implications for the reform of the international financial architecture. It presents a general equilibrium model in which the need to roll over external debt disciplines the policies of debtor countries but makes them vulnerable to unwarranted debt crises owing to bad shocks. The paper presents a welfare analysis of several measures that have been discussed in recent debates, such as the adoption of renegotiation-friendly clauses in debt contracts and the establishment of an international bankruptcy regime for sovereigns.
Download or read book Debt Maturity and the Global Financial Architecture written by Olivier Jeanne and published by . This book was released on 2000 with total page 52 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book Sovereign Debt Crisis and International Financial Architecture written by Christoph Yew and published by GRIN Verlag. This book was released on 2012-03-06 with total page 65 pages. Available in PDF, EPUB and Kindle. Book excerpt: Seminar paper from the year 2006 in the subject Business economics - Economic Policy, grade: 2.0, University of Osnabrück (Fachbereich Internationale Wirtschaftspolitik), course: Schuldenkrisen, language: English, abstract: If we have a look at the composition of total debt of different countries it is easy to see (Figure 1.2) that from 1992 to 2002 the advanced countries' total debts mainly consisted of domestic currency, whereas those of emerging market countries where mainly borrowed in foreign currency. If we focus our view on sovereign debt only, this difference vanishes. From 1980 to 2003 about 99.7 percent (Table 1) of sovereign debt in emerging market countries was borrowed in foreign currency. In advanced economies it was slightly less (92.5%). Nevertheless, in both cases the U.S. dollar was the dominating foreign currency. A reason for this might be that this currency is considered as very important in international trade. A comparison between these facts leads me to the conclusion that private persons in advanced countries trust their own currency, whereas private persons in emerging market economies seem to trust foreign currencies. Otherwise the currency composition between total debt and sovereign debt would not differ so much from each other. Another interesting fact concerns which other currencies states prefer to borrow in. They like advanced economies' currencies instead those of emerging market countries. Another important point concerning public debt structure is their composition structure concerning maturity. It can be seen (Figure 4.2) that during 1988 the average maturity of sovereign debt issued in both kinds of countries was little below 8 years. But during the following 14 years the average maturity rate in emerging market countries decreased to about 5 years while the maturity rate of advanced countries sovereign debt increased to almost 10 years. This tendency towards short-term debt can also be seen on Figure 4.1. It is interesting to n
Download or read book Debt Maturity and the Use of Short Term Debt written by Sophia Chen and published by International Monetary Fund. This book was released on 2019-02-05 with total page 77 pages. Available in PDF, EPUB and Kindle. Book excerpt: The maturity structure of debt can have financial and real consequences. Short-term debt exposes borrowers to rollover risk (where the terms of financing are renegotiated to the detriment of the borrower) and is associated with financial crises. Moreover, debt maturity can have an impact on the ability of firms to undertake long-term productive investments and, as a result, affect economic activity. The aim of this paper is to examine the evolution and determinants of debt maturity and to characterize differences across countries.
Download or read book Private Sector Involvement and International Financial Crises written by Michael Chui and published by OUP Oxford. This book was released on 2005-01-27 with total page 236 pages. Available in PDF, EPUB and Kindle. Book excerpt: Offering an analytical perspective on the design and reform of the international financial architecture, this book stresses the important role played by creditor co-ordination problems in the origin and management of crises by relating the insights of the new literature on global games to earlier work on currency crises, bank runs, and sovereign debt default. It examines the design of sovereign bankruptcy procedures, the role of the IMF in influencing creditors and debtor countries, and the currency composition of sovereign debt, and draws on recent research and policy work. The book's first part provides a critical synthesis of the literature underpinning the architecture debate. It reviews the traditional distinction between "fundamentals-based" and "sunspot-based" crises before reconciling the two using global game methods. The role of co-ordination problems in sparking costly liquidation and influencing the debtor's incentives to repay is then examined in depth and shown to lie at the heart of crisis management policy. The empirical literature on leading indicators of crisis is also critically examined and related to the architecture debate. In its second part the book examines key issues in crisis management. Suggesting that optimal reforms must set the inefficiencies of crisis against the inefficiencies of debtor moral hazard, the authors consider the relative merits of statutory and contractual solutions to sovereign debt workouts. They go on to discuss the role of the IMF in influencing private lending and debtor moral hazard, theoretically and empirically. They argue that there is no simple relationship between ex post crisis management and ex ante moral hazard, implying that the handling of financial crises is a delicate affair warranting a cautious approach by would-be architects.
Download or read book Sovereign Debt Structure for Crisis Prevention written by Mr.Eduardo Borensztein and published by International Monetary Fund. This book was released on 2005-01-26 with total page 72 pages. Available in PDF, EPUB and Kindle. Book excerpt: The debate on government debt in the context of possible reforms of the international financial architecture has thus far focused on crisis resolution. This paper seeks to broaden this debate. It asks how government debt could be structured to pursue other objectives, including crisis prevention, international risk-sharing, and facilitating the adjustment of fiscal variables to changes in domestic economic conditions. To that end, the paper considers recently developed analytical approaches to improving sovereign debt structure using existing instruments, and reviews a number of proposals--including the introduction of explicit seniority and GDP-linked instruments--in the sovereign context.
Download or read book New International Financial Architecture written by Nouriel Roubini and published by Edward Elgar Publishing. This book was released on 2005 with total page 658 pages. Available in PDF, EPUB and Kindle. Book excerpt: This unique collection of seminal articles reflects on the evolution of international finance in the 1990s, exploring the recurrence of financial crises and the resultant policy responses. The editors have brought together groundbreaking academic research addressing the policy decisions made by the key players. In this way, New International Financial Architecture sheds new light on the important debate of the 1990s which started with the Mexican crisis. This authoritative two volume set will provide a great resource for academics, policymakers and private sector participants.
Download or read book Global Waves of Debt written by M. Ayhan Kose and published by World Bank Publications. This book was released on 2021-03-03 with total page 403 pages. Available in PDF, EPUB and Kindle. Book excerpt: The global economy has experienced four waves of rapid debt accumulation over the past 50 years. The first three debt waves ended with financial crises in many emerging market and developing economies. During the current wave, which started in 2010, the increase in debt in these economies has already been larger, faster, and broader-based than in the previous three waves. Current low interest rates mitigate some of the risks associated with high debt. However, emerging market and developing economies are also confronted by weak growth prospects, mounting vulnerabilities, and elevated global risks. A menu of policy options is available to reduce the likelihood that the current debt wave will end in crisis and, if crises do take place, will alleviate their impact.
Download or read book Sovereign Debt Restructurings 1950 2010 written by Mr.Udaibir S. Das and published by International Monetary Fund. This book was released on 2012-08-01 with total page 128 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper provides a comprehensive survey of pertinent issues on sovereign debt restructurings, based on a newly constructed database. This is the first complete dataset of sovereign restructuring cases, covering the six decades from 1950–2010; it includes 186 debt exchanges with foreign banks and bondholders, and 447 bilateral debt agreements with the Paris Club. We present new stylized facts on the outcome and process of debt restructurings, including on the size of haircuts, creditor participation, and legal aspects. In addition, the paper summarizes the relevant empirical literature, analyzes recent restructuring episodes, and discusses ongoing debates on crisis resolution mechanisms, credit default swaps, and the role of collective action clauses.
Download or read book Institutions Financial Markets and Firms Choice of Debt Maturity written by Asli Demirgüç-Kunt and published by . This book was released on 1999 with total page pages. Available in PDF, EPUB and Kindle. Book excerpt: November 1996 Do firms in developing countries use less long term debt than similar firms in industrial countries? This paper investigates the role of institutional factors in explaining firms' choice of debt maturity in a sample of 30 countries during 1980-91. Demirguc-Kunt and Maksimovic examine the maturity of firm debt in 30 countries during the period 1980-91. They find systematic differences in the use of long-term debt between industrial and developing countries and between small and large firms. In industrial countries, firms have more long-term debt and a greater proportion of their total debt is held as long-term debt. Large firms have more long-term debt, as a proportion of total assets and debt, than smaller firms do. The authors try to explain the variations in debt composition by differences in the effectiveness of legal systems, the development of stock markets and the banking sector, the level of government subsidies, and firm characteristics. In countries with an effective legal system, both large and small firms have more long-term debt relative to assets and their debt is of longer maturity. Both large and small firms in countries with a tradition of common law use less long-term debt, relative to their assets, than do firms in countries with a tradition of civil law. Large firms in common law countries also use less short-term debt. In countries with active stock markets, large firms have more long-term debt and debt of longer maturity. Neither the level of activity nor the size of the market is correlated with financing choices of small firms. By contrast, in countries with large banking sectors, small firms have less short-term debt and their debt is of longer maturity. Variation in the size of the banking sector does not have a corresponding correlation with the capital structures of large firms. Government subsidies to industry increase long-term debt levels of both small and large firms. For all firms, inflation is associated with less use of long-term debt. The authors also find evidence of maturity-matching for both large and small firms. This paper--a product of the Finance and Private Sector Development Division, Policy Research Department--is part of a larger effort in the department to understand the impact of institutional constraints on firms' financing choices. The study was funded by the Bank's Research Support Budget under the research project Term Finance: Theory and Evidence (RPO 679-62).
Download or read book The Financial Crisis and Corporate Debt Maturity written by Víctor M. González and published by . This book was released on 2014 with total page 31 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper shows the relevance of the financial crisis on firm- and country-level determinants on debt maturity structure for 39 countries during the period 1995-2012. Corporate debt maturity declined during the financial crisis. However, the financial crisis had a positive effect on the corporate debt maturity of smaller firms. Cross-firm and cross-country differences exerted an influence on the effect of the financial crisis on corporate debt maturity. Legal enforcement and bank concentration reduced the negative impact of the financial crisis on debt maturity in line with the efficiency of the legal system and relationship banking reducing the firm's credit constraints following the financial crisis. We also show that the effect of the financial crisis on debt maturity increased with the decline in economic activity during the crisis.
Download or read book International Financial Contagion written by Stijn Claessens and published by Springer Science & Business Media. This book was released on 2013-04-17 with total page 461 pages. Available in PDF, EPUB and Kindle. Book excerpt: No sooner had the Asian crisis broken out in 1997 than the witch-hunt started. With great indignation every Asian economy pointed fingers. They were innocent bystanders. The fundamental reason for the crisis was this or that - most prominently contagion - but also the decline in exports of the new commodities (high-tech goods), the steep rise of the dollar, speculators, etc. The prominent question, of course, is whether contagion could really have been the key factor and, if so, what are the channels and mechanisms through which it operated in such a powerful manner. The question is obvious because until 1997, Asia's economies were generally believed to be immensely successful, stable and well managed. This question is of great importance not only in understanding just what happened, but also in shaping policies. In a world of pure contagion, i.e. when innocent bystanders are caught up and trampled by events not of their making and when consequences go far beyond ordinary international shocks, countries will need to look for better protective policies in the future. In such a world, the international financial system will need to change in order to offer better preventive and reactive policy measures to help avoid, or at least contain, financial crises.
Download or read book Growth Debt and Climate written by and published by . This book was released on 2023 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt:
Download or read book International Reserves and Foreign Currency Liquidity written by International Monetary Fund. Statistics Dept. and published by International Monetary Fund. This book was released on 2015-01-07 with total page 258 pages. Available in PDF, EPUB and Kindle. Book excerpt: This update of the guidelines published in 2001 sets forth the underlying framework for the Reserves Data Template and provides operational advice for its use. The updated version also includes three new appendices aimed at assisting member countries in reporting the required data.
Download or read book Debt Maturity written by Mr.Jun Il Kim and published by International Monetary Fund. This book was released on 2015-12-09 with total page 26 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper examines how debt maturity affects the debt limit, defined as the maximum amount of debt a government can afford without defaulting. We develop a model where investors are risk neutral, the primary balance is stochastic but exogenous, and default occurs solely due to the government’s inability to pay. We find that debt limit is higher for long-term debt. Underlying this finding is the intrinsic advantage of long-term debt to price in future upside potential in fiscal outcomes in its current price. Such advantage makes long-term debt effectively cheaper than short-term debt at the margin, and leads to a higher debt limit. Simulation results suggest that the effect of debt maturity on debt limit could be substantial—particularly, if fiscal outcomes are subject to large uncertainty.
Download or read book International Financial Architecture written by C. Peláez and published by Springer. This book was released on 2005-11-01 with total page 427 pages. Available in PDF, EPUB and Kindle. Book excerpt: The Group of Seven Industrialized Countries, G7 developed a new doctrine of international supervision and regulation of financial markets. The G7 instructed international financial institution such as the IMF, the Bank for International Settlements, the World Bank and the Multilateral Development Banks to tighten their supervision and regulation of international finance. This volume examines this doctrine sometimes known as the 'New Architecture of the International Financial System' or IFA. Strengthening of the international financial system never ends and there have been recurring vulnerabilities in international financial architecture. The book examines current practices and its consequences and how the IFA has evolved and its alternatives. The book draws upon academic knowledge, practitioner techniques in financial risk management and official doctrine to analyze how investors, creditors and debts function within the new architecture.
Download or read book Sovereign Debt written by S. Ali Abbas and published by Oxford University Press. This book was released on 2019-10-21 with total page 288 pages. Available in PDF, EPUB and Kindle. Book excerpt: The last time global sovereign debt reached the level seen today was at the end of the Second World War, and this shaped a generation of economic policymaking. International institutions were transformed, country policies were often draconian and distortive, and many crises ensued. By the early 1970s, when debt fell back to pre-war levels, the world was radically different. It is likely that changes of a similar magnitude -for better and for worse - will play out over coming decades. Sovereign Debt: A Guide for Economists and Practitioners is an attempt to build some structure around the issues of sovereign debt to help guide economists, practitioners and policymakers through this complicated, but not intractable, subject. Sovereign Debt brings together some of the world's leading researchers and specialists in sovereign debt to cover a range of sub-disciplines within this vast topic. It explores debt management with debt sustainability; debt reduction policies with crisis prevention policies; and the history with the conjuncture. It is a foundation text for all those interested in sovereign debt, with a particular focus real world examples and issues.
