External Finance and Foreign Debt in Central and Eastern European Countries

Author/Editor:

Stefano Manzocchi

Publication Date:

October 1, 1997

Electronic Access:

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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:

External finance can provide a positive contribution to the transition process and can enhance welfare in former centrally planned economies, especially when domestic saving has not fully recovered after the initial contraction. However, as was pointed out at the beginning of the transition process, foreign debt could exert a strong constraint on the borrowing capacity of some central and eastern European countries. This paper analyzes the determinants of net external borrowing in ten transition economies during 1990-95 and assesses the impact of the outstanding stock of foreign liabilities on net financial inflows.

Series:

Working Paper No. 1997/134

Subject:

Balance of payments Debt burden Export performance Exports External debt Foreign direct investment International trade

English

Publication Date:

October 1, 1997

ISBN/ISSN:

9781451855562/1018-5941

Stock No:

WPIEA1341997

Pages:

28

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