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Vulnerability, Crisis and Debt Maturity: do IMF Interventions Shorten the Length of Borrowing?

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  • Diego Saravia

Abstract

This paper studies how IMF lending affects countries' bonds maturity. Debt maturity was claimed to be one of the causes of the crisis of recent years: Too much short-term debt would be the seed of self-fulfilling crises. In turn, one of the goals of the IMF is to prevent crises and to alleviate their effects once they occur. I find that IMF interventions shorten the length of countries' borrowing which is a non desirable, and not analyzed, consequence of IMF lending. Moreover, this finding is consistent with the implications of this Institution's senior status in its lending.

Suggested Citation

  • Diego Saravia, 2010. "Vulnerability, Crisis and Debt Maturity: do IMF Interventions Shorten the Length of Borrowing?," Working Papers Central Bank of Chile 600, Central Bank of Chile.
    • Handle: RePEc:chb:bcchwp:600
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    1. Luca Papi & Andrea F Presbitero & Alberto Zazzaro, 2015. "IMF Lending and Banking Crises," IMF Economic Review, Palgrave Macmillan;International Monetary Fund, vol. 63(3), pages 644-691, November.
    2. Corsetti, Giancarlo & Erce, Aitor & Uy, Timothy, 2018. "Debt Sustainability and the Terms of Official Support," CEPR Discussion Papers 13292, C.E.P.R. Discussion Papers.
    3. Aitor Erce, 2012. "Does the IMF´s official support affect sovereign bond maturities?," Working Papers 1231, Banco de España.
    4. Aitor Erce, 2012. "Does the IMF's official support affect sovereign bonds maturities?," Globalization Institute Working Papers 128, Federal Reserve Bank of Dallas.

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