public debt
... External Debt :• Borrowings by the government from abroad is known as external debt. The external debt comprises of:- Multilateral borrowings, Bilateral borrowings, Loans from World Bank, Asian Development Bank, etc. External loans help to take up various developmental programmes in developing and u ...
... External Debt :• Borrowings by the government from abroad is known as external debt. The external debt comprises of:- Multilateral borrowings, Bilateral borrowings, Loans from World Bank, Asian Development Bank, etc. External loans help to take up various developmental programmes in developing and u ...
Securitisation to the Rescue - Foundation for European Progressive
... number of severe problems, among them weak bank balance sheets, frozen interbank markets and the danger of a credit crunch particularly in Southern Europe. This resulted in a loss of monetary ...
... number of severe problems, among them weak bank balance sheets, frozen interbank markets and the danger of a credit crunch particularly in Southern Europe. This resulted in a loss of monetary ...
Sovereign yield spreads during the Euro-crisis
... Sovereign yield spreads during the Euro-crisis – Fundamental factors versus redenomination risk Abstract: The intensity of the Euro-crisis was reflected by significant increases of sovereign bond yields in the troubled countries. This has launched a hot debate whether this increase can solely be at ...
... Sovereign yield spreads during the Euro-crisis – Fundamental factors versus redenomination risk Abstract: The intensity of the Euro-crisis was reflected by significant increases of sovereign bond yields in the troubled countries. This has launched a hot debate whether this increase can solely be at ...
View this article - The European Journal of Comparative
... Commission acknowledges the heterogeneity issue, since "EU Member States experienced highly different fiscal and external conditions, which call for tailor-made policies" (p. 9). In other words, different countries facing different initial conditions and debt dynamic paths will have to adopt differe ...
... Commission acknowledges the heterogeneity issue, since "EU Member States experienced highly different fiscal and external conditions, which call for tailor-made policies" (p. 9). In other words, different countries facing different initial conditions and debt dynamic paths will have to adopt differe ...
staff note for the g20: state-contingent debt instruments for sovereigns
... may bring benefits to sovereigns, investors, and the global financial system. SCDIs can help sovereigns preserve policy space in bad times, complementing other selfinsurance and risk-sharing tools. In addition, SCDIs can enable sovereigns to diversify their investor base away from banks, and may enh ...
... may bring benefits to sovereigns, investors, and the global financial system. SCDIs can help sovereigns preserve policy space in bad times, complementing other selfinsurance and risk-sharing tools. In addition, SCDIs can enable sovereigns to diversify their investor base away from banks, and may enh ...
Macroeconomic Determinants of Sovereign Bond Yield Spreads in
... Both in developing and developed economies, research tend to examine the relationship between a variable that captures the country’s default risk and a set of financial and macroeconomic variables. Macroeconomic variables are found to have a significant effect on sovereign risk in mostly all cases. ...
... Both in developing and developed economies, research tend to examine the relationship between a variable that captures the country’s default risk and a set of financial and macroeconomic variables. Macroeconomic variables are found to have a significant effect on sovereign risk in mostly all cases. ...
The Risks of Sovereign Lending: Lessons from History
... The underlying and overlapping causes of the wave of defaults in the 1930s are complex. However, to a large extent the world economic environment can be held responsible for most of the defaults of the 1930s. The demand for loans in the 1920s was based to a large extent on the need of many countrie ...
... The underlying and overlapping causes of the wave of defaults in the 1930s are complex. However, to a large extent the world economic environment can be held responsible for most of the defaults of the 1930s. The demand for loans in the 1920s was based to a large extent on the need of many countrie ...
Bank Runs, Deposit Insurance, and Liquidity Diamond and Dybvig
... Public debt overhangs usually last more than two decades (see Reinhart, Reinhart and Rogoff, 2012). The combination of sluggish growth and deflation or low inflation does not contribute to their resolution. Low and (often negative) real interest rates may be necessary to unwind the public and privat ...
... Public debt overhangs usually last more than two decades (see Reinhart, Reinhart and Rogoff, 2012). The combination of sluggish growth and deflation or low inflation does not contribute to their resolution. Low and (often negative) real interest rates may be necessary to unwind the public and privat ...
Debt and monetary policy: comments on Jagjit S Chadha, Luisa
... domestic residents.4 In these circumstances many of the debt holders are subscribing out of a sense of patriotism and are typically holders for the long term. This clearly helps to make the debt sustainable, and at affordable interest rates. In some cases insurance has been provided by exchange cont ...
... domestic residents.4 In these circumstances many of the debt holders are subscribing out of a sense of patriotism and are typically holders for the long term. This clearly helps to make the debt sustainable, and at affordable interest rates. In some cases insurance has been provided by exchange cont ...
BIS Working Papers The future of public debt: prospects and implications No 300
... And none of these led to default. 4 In more recent times, Japan has been living with a public debt ratio of over 150% without any adverse effect on its cost. So it is possible that investors will continue to put strong faith in industrial countries’ ability to repay, and that worries about excessive ...
... And none of these led to default. 4 In more recent times, Japan has been living with a public debt ratio of over 150% without any adverse effect on its cost. So it is possible that investors will continue to put strong faith in industrial countries’ ability to repay, and that worries about excessive ...
Impairment Of Debt and Write Off Policy – 2016/2017
... Financial Officer (CFO) by Council resolution from time to time The Accountant: Credit Control and Debt Collection must prepare a report within the delegated powers of the CFO containing the following: ...
... Financial Officer (CFO) by Council resolution from time to time The Accountant: Credit Control and Debt Collection must prepare a report within the delegated powers of the CFO containing the following: ...
Business Cycle (De)Synchronization in the Aftermath of the Global
... ratification of the Maastricht Treaty by the European Union countries, which paved the road towards the establishment of the common currency in 1999. The seasonally adjusted monthly industrial production indices are collected from Thompson Datastream International database. In our analysis, we estim ...
... ratification of the Maastricht Treaty by the European Union countries, which paved the road towards the establishment of the common currency in 1999. The seasonally adjusted monthly industrial production indices are collected from Thompson Datastream International database. In our analysis, we estim ...
Government Debt: A Key Role in Financial Intermediation
... function. In developing countries, as we will show, this is reflected in the presence of large amounts of government debt on bank balance sheets. In some cases, government debt is also used as explicit collateral in repurchase agreements – a transaction that requires that government debt be safe. An ...
... function. In developing countries, as we will show, this is reflected in the presence of large amounts of government debt on bank balance sheets. In some cases, government debt is also used as explicit collateral in repurchase agreements – a transaction that requires that government debt be safe. An ...
Costs of sovereign default
... honour their debt repayments.(1) In contrast, Bulow and Rogoff (1989) suggest that, if the government can invest existing borrowed funds in international markets, this cushion could be used to support current consumption should the sovereign be cut off from international borrowing following a volunt ...
... honour their debt repayments.(1) In contrast, Bulow and Rogoff (1989) suggest that, if the government can invest existing borrowed funds in international markets, this cushion could be used to support current consumption should the sovereign be cut off from international borrowing following a volunt ...
The Autonomous Regions` funding model: Between the State
... and financial conditions to lengthen the average life of its portfolio. This will help prevent future bouts of financial tension from creating difficulties in placing debt on the markets, given that fewer maturities will accumulate in a given year. As such the average life has increased from 6.2 yea ...
... and financial conditions to lengthen the average life of its portfolio. This will help prevent future bouts of financial tension from creating difficulties in placing debt on the markets, given that fewer maturities will accumulate in a given year. As such the average life has increased from 6.2 yea ...
Thoughts from a Renaissance man About that 1982 debt default
... others in EM from lower commodity prices. What is surprising is that Nigeria with external debt of just 14% of GDP in 1980 should have defaulted as soon as 1982 (when its debt ratio was still a small 22% of GDP), or that Mexico could have been down to a few weeks of import cover in early 1982, when ...
... others in EM from lower commodity prices. What is surprising is that Nigeria with external debt of just 14% of GDP in 1980 should have defaulted as soon as 1982 (when its debt ratio was still a small 22% of GDP), or that Mexico could have been down to a few weeks of import cover in early 1982, when ...
Working Paper No. 819
... the public debt for the current period, sf the stock-flow adjustments, and Δh the change of the monetary base (liabilities issued by the central bank) as a ratio to GDP.11 According to equation (2), which is a simple mathematical formula but with complex interrelations between its variables, soverei ...
... the public debt for the current period, sf the stock-flow adjustments, and Δh the change of the monetary base (liabilities issued by the central bank) as a ratio to GDP.11 According to equation (2), which is a simple mathematical formula but with complex interrelations between its variables, soverei ...
Latin American Examples to Analyze the Euro Question
... different, but only to a degree.8 Any external financing shortfall imposed by the crisis on peripheral economies that is not offset by liquidity support from external sources needs to be accommodated; therefore adjustment remains a problem. While the ability of the ECB to do what it takes to provide ...
... different, but only to a degree.8 Any external financing shortfall imposed by the crisis on peripheral economies that is not offset by liquidity support from external sources needs to be accommodated; therefore adjustment remains a problem. While the ability of the ECB to do what it takes to provide ...
Credit booms: implications for the public and private sector
... (2011)). In the first case, a foreign investor is at an informational disadvantage relative to local investors and may prefer to invest in, say, sovereign debt or securities issued by agencies that benefit from some type of government guarantee.5 In the second, corporate treasurers may seek deposit- ...
... (2011)). In the first case, a foreign investor is at an informational disadvantage relative to local investors and may prefer to invest in, say, sovereign debt or securities issued by agencies that benefit from some type of government guarantee.5 In the second, corporate treasurers may seek deposit- ...
A safer and more prosperous Economic and Monetary Union
... We want to build a fully-fledged Banking Union. Crea- rules considering banks’ exposure to a single asset class. This has led to a situation in which bank exposure to doting a complete Banking Union is absolutely crucial in mestic sovereign debt in the Euro area averaged 118% of safeguarding taxpaye ...
... We want to build a fully-fledged Banking Union. Crea- rules considering banks’ exposure to a single asset class. This has led to a situation in which bank exposure to doting a complete Banking Union is absolutely crucial in mestic sovereign debt in the Euro area averaged 118% of safeguarding taxpaye ...
The Economics of Austerity and the Vicious Spirals of Greece
... (EMU) Greece could not use monetary policy as a stabilizing tool and was therefore left with internal devaluation after the financial crisis hit Europe. The resulting sharp decline in wages and GDP growth made it even more difficult for Greece to honour its debt. Greece was therefore forced to negot ...
... (EMU) Greece could not use monetary policy as a stabilizing tool and was therefore left with internal devaluation after the financial crisis hit Europe. The resulting sharp decline in wages and GDP growth made it even more difficult for Greece to honour its debt. Greece was therefore forced to negot ...
V. Towards a financial stability
... increasing use, especially in emerging market economies (EMEs), of macroprudential tools. But are these measures enough? Should not fiscal policy, too, be an essential part of the post-crisis macro-financial stability framework? Financial stability generally, and financial cycles in particular, hard ...
... increasing use, especially in emerging market economies (EMEs), of macroprudential tools. But are these measures enough? Should not fiscal policy, too, be an essential part of the post-crisis macro-financial stability framework? Financial stability generally, and financial cycles in particular, hard ...
The Eurozone Crisis
... 8.7% of GDP during 2010. To achieve this, he announced tough austerity measures for 2010, including a 10% reduction in social security spending, and a freeze of public sector wages. He also promised to reform the pension and tax systems to make sure wealthier people paid more, and to fight corruptio ...
... 8.7% of GDP during 2010. To achieve this, he announced tough austerity measures for 2010, including a 10% reduction in social security spending, and a freeze of public sector wages. He also promised to reform the pension and tax systems to make sure wealthier people paid more, and to fight corruptio ...
Rationale behind a euro area "fiscal capacity"
... monetary union (EMU), the integration process that brought the euro's creation. The main areas of action have included: Increased coordination of MS' budgetary and economic policies, with stronger surveillance at EU level. Building on the existing stability and growth pact (SGP), several changes i ...
... monetary union (EMU), the integration process that brought the euro's creation. The main areas of action have included: Increased coordination of MS' budgetary and economic policies, with stronger surveillance at EU level. Building on the existing stability and growth pact (SGP), several changes i ...
European debt crisis
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The European debt crisis (often also referred to as the Eurozone crisis or the European sovereign debt crisis) is a multi-year debt crisis that has been taking place in the European Union since the end of 2009. Several eurozone member states (Greece, Portugal, Ireland, Spain and Cyprus) were unable to repay or refinance their government debt or to bail out over-indebted banks under their national supervision without the assistance of third parties like other Eurozone countries, the European Central Bank (ECB), or the International Monetary Fund (IMF).The detailed causes of the debt crises varied. In several countries, private debts arising from a property bubble were transferred to sovereign debt as a result of banking system bailouts and government responses to slowing economies post-bubble. The structure of the eurozone as a currency union (i.e., one currency) without fiscal union (e.g., different tax and public pension rules) contributed to the crisis and limited the ability of European leaders to respond. European banks own a significant amount of sovereign debt, such that concerns regarding the solvency of banking systems or sovereigns are negatively reinforcing.As concerns intensified in early 2010 and thereafter, leading European nations implemented a series of financial support measures such as the European Financial Stability Facility (EFSF) and European Stability Mechanism (ESM). The ECB also contributed to solve the crisis by lowering interest rates and providing cheap loans of more than one trillion euro in order to maintain money flows between European banks. On 6 September 2012, the ECB calmed financial markets by announcing free unlimited support for all eurozone countries involved in a sovereign state bailout/precautionary programme from EFSF/ESM, through some yield lowering Outright Monetary Transactions (OMT).Return to economic growth and improved structural deficits enabled Ireland and Portugal to exit their bailout programmes in July 2014. Greece and Cyprus both managed to partly regain market access in 2014. Their bailout programme is scheduled to end in March 2016. Spain never officially received a bailout programme. It's rescue package from the ESM was earmarked for a bank recapitalization fund and did not include financial support for the government itself.The crisis had significant adverse economic effects and labour market effects, with unemployment rates in Greece and Spain reaching 27%, and was blamed for subdued economic growth, not only for the entire eurozone, but for the entire European Union. As such, it can be argued to have had a major political impact on the ruling governments in 9 out of 19 eurozone countries, contributing to power shifts in Greece, Ireland, France, Italy, Portugal, Spain, Slovenia, Slovakia, and the Netherlands.