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The Fund’s Lending Framework and Sovereign Debt - Preliminary Considerations

Author : International Monetary Fund. Legal Dept.

Publisher : International Monetary Fund

Page : 43 pages

File Size : 20,17 MB

Release : 2014-05-23

Category : Business & Economics

ISBN : 149834335X

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Book Description

As a follow-up to the Executive Board's May 2013 discussion, this paper considers a possible direction for reform of the Fund's lending framework in the context of sovereign debt vulnerabilities. The primary focus of this paper relates to the Fund's exceptional access framework, since it is in this context that the Fund will most likely have to make the difficult judgment as to whether the member's problems can be resolved with or without a debt restructuring. The objective of the preliminary approaches set forth in this paper is to reduce the costs of crisis resolution for both creditors and debtors—relative to the alternatives—thereby benefitting the overall system. These ideas are market-based and their eventual implementation would require meaningful consultation with creditors.





The Fund's Lending Framework and Sovereign Debt-Further Considerations

Author :

Publisher : INTERNATIONAL MONETARY FUND

Page : 99 pages

File Size : 10,29 MB

Release : 2015-09-04

Category : Business & Economics

ISBN : 9781498344739

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Book Description

In discussing the June 2014 paper, Executive Directors broadly supported staff’s proposal to introduce more flexibility into the Fund’s exceptional access framework to reduce unnecessary costs for the member, its creditors, and the overall system. Directors’ views varied on staff’s proposal to eliminate the systemic exemption introduced in 2010. Many Directors favored removing the exemption but some others preferred to retain it and requested staff to consult further with relevant stakeholders on possible approaches to managing contagion. This paper offers specific proposals on how the Fund’s policy framework could be changed, presents staff’s analysis on the specific issue of managing contagion, and addresses some implementation issues. No Board decision is proposed at this stage. The paper is consistent with the Executive Board’s May 2013 endorsement of a work program focused on strengthening market-based approaches to resolving sovereign debt crises.



A Primer on Managing Sovereign Debt-Portfolio Risks

Author : Thordur Jonasson

Publisher : International Monetary Fund

Page : 133 pages

File Size : 36,75 MB

Release : 2018-04-06

Category : Business & Economics

ISBN : 1484350545

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Book Description

This paper provides an overview of sovereign debt portfolio risks and discusses various liability management operations (LMOs) and instruments used by public debt managers to mitigate these risks. Debt management strategies analyzed in the context of helping reach debt portfolio targets and attain desired portfolio structures. Also, the paper outlines how LMOs could be integrated into a debt management strategy and serve as policy tools to reduce potential debt portfolio vulnerabilities. Further, the paper presents operational issues faced by debt managers, including the need to develop a risk management framework, interactions of debt management with fiscal policy, monetary policy, and financial stability, as well as efficient government bond markets.



Global Waves of Debt

Author : M. Ayhan Kose

Publisher : World Bank Publications

Page : 403 pages

File Size : 18,79 MB

Release : 2021-03-03

Category : Business & Economics

ISBN : 1464815453

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Book Description

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.



Government Financial Assets and Debt Sustainability

Author : Ms.Camila Henao Arbelaez

Publisher : International Monetary Fund

Page : 41 pages

File Size : 21,39 MB

Release : 2017-07-25

Category : Business & Economics

ISBN : 1484311051

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Book Description

Do government financial assets help improve public debt sustainability? To answer this question, we assemble a comprehensive dataset on government assets using multiple sources and covering 110 advanced and emerging market economies since the late 1980s. We then use this rich database to estimate the impact of assets on two key dimensions of debt sustainability: borrowing costs and the probability of debt distress. Government financial assets significantly reduce sovereign spreads and the probability of debt crises in emerging economies but not in advanced economies, and the effect varies with asset characteristics, notably liquidity. Government finacial assets also help discriminate countries across the distribution of sovereign spreads, thus signaling information about emerging economies’ creditworthiness.



Greece

Author : International Monetary Fund. European Dept.

Publisher : International Monetary Fund

Page : 23 pages

File Size : 28,12 MB

Release : 2016-05-23

Category : Business & Economics

ISBN : 1484362098

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Book Description

This paper provides preliminary debt sustainability analysis (DSA) of Greece. Debt was deemed sustainable, but not with high probability, when the first program was adopted in May 2010. The much deeper-than-expected recession necessitated significant debt relief in 2011–12 to maintain the prospect of restoring sustainability. Serious implementation problems caused a sharp deterioration in sustainability, raising fresh doubts about the realism of policy assumptions, especially from mid–2014. Developments since last summer suggest that a realignment of critical policy, and DSA assumptions can no longer be deferred if the DSA is to remain credible. Staff believes that revised program targets remain sufficiently ambitious to warrant continued support from Greece’s European partners.



Issuing International Sovereign Bonds

Author : Mr.Mauro Mecagni

Publisher : International Monetary Fund

Page : 37 pages

File Size : 45,5 MB

Release : 2014-06-04

Category : Business & Economics

ISBN : 1475523106

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Book Description

This African Department Paper examines the rise in international sovereign bonds issued by African frontier economies and recommends policies for potential first-time issuers.



Sovereign Debt Restructuring and Growth

Author : Lorenzo Forni

Publisher : International Monetary Fund

Page : 42 pages

File Size : 36,64 MB

Release : 2016-08-16

Category : Business & Economics

ISBN : 1475526520

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Book Description

This paper studies the effect of sovereign debt restructurings with external private creditors on growth during the period 1970-2010. We find that there are bad and good (or not so bad) debt restructurings for growth. While growth generally declines in the aftermath of a sovereign debt restructuring, agreements that allow countries to exit a default spell (final restructurings) are associated with improving growth. The impact can be significant. In general, three years after restructuring, growth is about 5 percent lower compared to countries that did not face restructuring over the same period. The exception is for final restructurings, which result in positive growth in the years immediately after the restructuring. Final restructurings tend to be better for growth because they reduce countries’ debt, with the strongest effect for countries that exit restructurings with relatively low debt levels.



Public Sector Debt Statistics

Author : International Monetary Fund

Publisher : International Monetary Fund

Page : 230 pages

File Size : 20,36 MB

Release : 2011-12-08

Category : Business & Economics

ISBN : 161635156X

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Book Description

The global financial crisis of recent years and the associated large fiscal deficits and debt levels that have impacted many countries underscores the importance of reliable and timely government statistics and, more broadly, public sector debt as a critical element in countries fiscal and external sustainability. Public Sector Debt Statistics is the first international guide of its kind, and its primary objectives are to improve the quality and timeliness of key debt statistics and promote a convergence of recording practices to foster international comparability and as a reference for national compilers and users for compiling and disseminating these data. Like other statistical guides published by the IMF, this one was prepared in consultation with countries and international agencies, including the nine organizations of the Inter-Agency Task Force on Finance Statistics (TFFS). The guide's preparation was based on the broad range of experience of our institutions and benefitted from consultation with national compilers of government finance and public sector debt statistics. The guide's concepts are harmonized with those of the System of National Accounts (2008) and the Balance of Payments and International Investment Position Manual, Sixth Edition.