Assessing the Risk of Private Sector Debt Overhang in the Baltic Countries

Author/Editor:

Valerie Herzberg

Publication Date:

November 1, 2010

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:

Between 2000 and 2007 nonfinancial private sector credit expanded rapidly in the Baltic countries, resulting in a non-negligible build-up of debt. Could this legacy debt hold back the economic recovery of the region? This paper analyzes the setting in each of the three countries and, with the help of an experimental Debt Overhang Index (DOI), draws tentative conclusions for domestic demand.

Series:

Working Paper No. 10/250

Subject:

English

Publication Date:

November 1, 2010

ISBN/ISSN:

9781455209507/1018-5941

Stock No:

WPIEA2010250

Price:

$18.00 (Academic Rate:$18.00)

Format:

Paper

Pages:

35

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