Sectoral Balance Sheet Mismatches and Macroeconomic Vulnerabilities in Colombia, 1996-2003

By Juan Manuel Lima, Johannes Wiegand, Enrique Montes, Carlos Varela

January 1, 2006

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Juan Manuel Lima, Johannes Wiegand, Enrique Montes, and Carlos Varela. Sectoral Balance Sheet Mismatches and Macroeconomic Vulnerabilities in Colombia, 1996-2003, (USA: International Monetary Fund, 2006) accessed December 26, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

We employ an extended version of the Allen et al. (2002) Balance Sheet Approach to examine macroeconomic vulnerabilities in Colombia between 1996 and 2003, based on an unusually rich data set. We find that vulnerabilities existing prior to Colombia's 1999 recession-high levels of private debt, a large negative foreign currency position of the corporate sector, and banks' exposure to stretched households and companies-receded subsequently. New vulnerabilities emerged, however, especially the high level of public debt accumulated until end-2003, and growing exposure of the financial sector to the sovereign.

Subject: Banking, Corporate sector, Economic sectors, Expenditure, Financial statements, Pension spending, Public debt, Public financial management (PFM), Public sector

Keywords: Balance sheet, Balance sheet contagion, Bank, Bank intermediary, Colombia, Corporate sector, Debt, East Asia, Emerging market economy, Financial statements, Foreign currency, Foreign currency assets, Foreign currency position, Lending to company, Liaibilities in Colombia, Macroeconomic Vulnerabilities, Mortgage debt, Pension spending, Public sector, Sectoral Balance Sheet Analysis, WP

Publication Details

Pages:

34
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2006/005
Stock No:

WPIEA2006005
ISBN:

9781451862652
ISSN:

1018-5941

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