The Level and Composition of Public Sector Debt in Emerging Market Crises
IMF Working Papers, August 1, 2006
Source details
- Canonical URL
- The Level and Composition of Public Sector Debt in Emerging Market Crises
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Bibliographic details
- Authors: Björn Rother, Ivetta Hakobyan, Monica B de Bolle
- Published: August 1, 2006
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451864465.001
Summary and scope
- Examines the evolution of public sector debt levels and structures in 12 emerging market countries around the time of financial crises.
- Focuses on whether the debt situation of sovereign borrowers became more vulnerable in the aftermath of crises.
- Principal findings:
- (i) debt levels tend to increase significantly post-crisis, and
- (ii) countries often experience more rigid debt structures following such events, with an increase in the share of external public debt to multilateral creditors and a greater exposure of the domestic banking system to sovereign debt.
Key findings
- Debt dynamics around crises:
- Debt levels tend to increase significantly post-crisis.
- Debt structures become more rigid after crises.
- Composition shifts:
- Increase in the share of external public debt to multilateral creditors.
- Greater exposure of the domestic banking system to sovereign debt.
Subject coverage and keywords
- Subject: Domestic debt, External debt, Financial crises, Public and publicly-guaranteed external debt, Public debt
- Keywords: crisis, debt-to-GDP, financial crisis, GDP, net, ratio, short-term debt, WP