Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

Between 2000 and 2007 nonfinancial private sector credit expanded rapidly in the Baltic countries, resulting in a non-negligible build-up of debt. Could this legacy debt hold back the economic recovery of the region? This paper analyzes the setting in each of the three countries and, with the help of an experimental Debt Overhang Index (DOI), draws tentative conclusions for domestic demand.

Accounting --- Corporate Finance --- Exports and Imports --- Macroeconomics --- International Lending and Debt Problems --- Macroeconomics: Consumption --- Saving --- Wealth --- Aggregate Factor Income Distribution --- Corporate Finance and Governance: General --- Public Administration --- Public Sector Accounting and Audits --- International economics --- Ownership & organization of enterprises --- Financial reporting, financial statements --- Debt burden --- Consumption --- Income --- Corporate sector --- Financial statements --- Debts, External --- Economics --- Business enterprises --- Finance, Public --- Estonia, Republic of --- Credit --- Credit control

Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

Do highly indebted countries suffer from a debt overhang? Can debt relief foster their growth rates? To answer these important questions, this article looks at how the debt-growth relation varies with indebtedness levels, as well as with the quality of policies and institutions, in a panel of developing countries. The main findings are that, in countries with good policies and institutions, there is evidence of debt overhang when the net present value of debt rises above 20–25 percent of GDP; however, debt becomes irrelevant above 70–80 percent. In countries with bad policies and institutions, thresholds appear to be lower, but the evidence of debt overhang is weaker and we cannot rule out that debt is always irrelevant. Indeed, in such countries, as well as in countries with high indebtedness levels, investment does not depend on debt levels. The analysis suggests that not all countries are likely to profit from debt relief, and thus that a one-size-fits-all debt relief approach might not be the most appropriate one.

Banks and Banking --- Exports and Imports --- Macroeconomics --- Money and Monetary Policy --- Public Finance --- Debt --- Debt Management --- Sovereign Debt --- International Investment --- Long-term Capital Movements --- Macroeconomics: Consumption --- Saving --- Wealth --- International Lending and Debt Problems --- Fiscal Policy --- International economics --- Public finance & taxation --- Finance --- Banking --- Monetary economics --- Domestic debt --- Capital flows --- Consumption --- Debt burden --- Private capital flows --- Public debt --- Balance of payments --- National accounts --- External debt --- Debts, Public --- Capital movements --- Economics --- Debts, External --- Fiscal policy --- South Africa

Choose an application

• Reference Manager
• EndNote
• RefWorks (Direct export to RefWorks)

This paper discusses a Request from Congo for a Three-Year Arrangement Under the Poverty Reduction and Growth Facility (PRGF) program. Growth in Congo in 2008 was strong, but weakened by the onset of the global financial crisis during the second half of the year that resulted in a deterioration of the country’s terms of trade and large job losses in the mining sector. Macroeconomic policies for the rest of 2009 and 2010 aim at reducing inflation while mitigating the impact of the global financial sector on the economy.

Poverty --- Debt relief --- International Monetary Fund --- Congo (Democratic Republic) --- Economic conditions --- Economic policy. --- Politics and government. --- Debt renegotiation --- Debt rescheduling --- Debt restructuring --- Relief, Debt --- Renegotiation, Debt --- Rescheduling, Debt --- Restructuring, Debt --- Debtor and creditor --- Destitution --- Wealth --- Basic needs --- Begging --- Poor --- Subsistence economy --- Law and legislation --- Internationaal monetair fonds --- International monetary fund --- Banks and Banking --- Exports and Imports --- Infrastructure --- Macroeconomics --- Public Finance --- Financial Risk Management --- International Lending and Debt Problems --- Debt --- Debt Management --- Sovereign Debt --- Fiscal Policy --- Investment --- Capital --- Intangible Capital --- Capacity --- Banks --- Depository Institutions --- Micro Finance Institutions --- Mortgages --- National Government Expenditures and Related Policies: General --- International economics --- Public finance & taxation --- Banking --- Finance --- Social welfare & social services --- External debt --- Public debt --- Public and publicly-guaranteed external debt --- Debt burden --- Expenditure --- Asset and liability management --- Debts, External --- Debts, Public --- Fiscal policy --- Saving and investment --- Banks and banking --- Expenditures, Public --- Congo, Democratic Republic of the