Re-Accessing International Capital Markets After Financial Crises: Some Empirical Evidence
Electronic Access:
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Summary:
The paper analyzes the factors that contribute to the re-access of countries that emerge from a severe financial crisis to the international capital markets. It conjectures that these factors depend on a sovereign's commitment and ability to repay its foreign debt, signaled by sound macroeconomic policies, and the global liquidity environment. Using panel data for 49 countries over a 24-year period, the analysis uses a simple probit approach to show that, indeed, a sustainable debt profile and a sound external position, accompanied by a favorable global liquidity environment, are key factors in affecting the likelihood a sovereign reaccesses international capital markets.
Series:
Working Paper No. 2007/136
Subject:
Debt service Debt service ratios Financial crises International capital markets International liquidity
English
Publication Date:
June 1, 2007
ISBN/ISSN:
9781451867008/1018-5941
Stock No:
WPIEA2007136
Pages:
20
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