Understanding the Use of Long-term Finance in Developing Economies

Author/Editor:

Maria Soledad Martinez Peria ; Sergio L. Schmukler

Publication Date:

April 26, 2017

Electronic Access:

Free Full Text (PDF file size is 661 KB).Use the free Adobe Acrobat Reader to view this PDF file

Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary:

This short paper reviews recent literature on the use of long-term finance in developing economies (relative to advanced ones) to identify where long-term financing occurs, and what role different financial intermediaries and markets play in extending this type of financing. Although banks are the most important providers of credit, they do not seem to offer long-term financing. Capital markets have grown since the 1990s and can provide financing at fairly long terms. But few firms use these markets. Only some institutional investors provide funding at long-term maturities. Governments might help to expand long-term financing, although with limited policy tools.

Series:

Working Paper No. 17/96

Subject:

English

Publication Date:

April 26, 2017

ISBN/ISSN:

9781475595758/1018-5941

Stock No:

WPIEA2017096

Price:

$18.00 (Academic Rate:$18.00)

Format:

Paper

Pages:

28

Please address any questions about this title to publications@imf.org