Vulnerability, Crisis and Debt Maturity: Do IMF Interventions Shorten the Length of Borrowing?
AbstractThis 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 crisis. In turn, one of the goals of the IMF interventions is to prevent crises and to alleviate their effects once they occur. I find evidence that, on average, IMF interventions reduce countries’ debt maturity which would be a non-desirable effect. However, I also find evidence that the final effect depends on countries’ fundamentals. The IMF would make countries borrow at longer terms (or reduce less the maturity) when the fundamentals are relatively weak.
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Bibliographic InfoPaper provided by Central Bank of Chile in its series Working Papers Central Bank of Chile with number 697.
Date of creation: Jul 2013
Date of revision:
Other versions of this item:
- 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.
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- Aitor Erce, 2012. "Does the IMF´s official support affect sovereign bond maturities?," Banco de Espaï¿½a Working Papers 1231, Banco de Espa�a.
- Aitor Erce, 2012. "Does the IMF's official support affect sovereign bonds maturities?," Globalization and Monetary Policy Institute Working Paper 128, Federal Reserve Bank of Dallas.
- Luca Papi & Andrea Filippo Presbitero & Alberto Zazzaro, 2013. "IMF Lending and Banking Crises," Mo.Fi.R. Working Papers 80, Money and Finance Research group (Mo.Fi.R.) - Univ. Politecnica Marche - Dept. Economic and Social Sciences.
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