Sectoral Balance Sheet Mismatches and Macroeconomic Vulnerabilities in Colombia, 1996-2003

 
Author/Editor: Lima, Juan Manuel ; Montes, Enrique ; Varela, Carlos ; Wiegand, Johannes
 
Publication Date: January 01, 2006
 
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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: We employ an extended version of the Allen et al. (2002) Balance Sheet Approach to examine macroeconomic vulnerabilities in Colombia between 1996 and 2003, based on an unusually rich data set. We find that vulnerabilities existing prior to Colombia's 1999 recession-high levels of private debt, a large negative foreign currency position of the corporate sector, and banks' exposure to stretched households and companies-receded subsequently. New vulnerabilities emerged, however, especially the high level of public debt accumulated until end-2003, and growing exposure of the financial sector to the sovereign.
 
Series: Working Paper No. 06/5
Subject(s): Risk premium | Colombia | Data analysis | Financial systems | Public debt

Author's Keyword(s): Sectoral balance sheet analysis | macroeconomic vulnerabilities | Colombia
 
English
Publication Date: January 01, 2006
ISBN/ISSN: 1934-7073 Format: Paper
Stock No: WPIEA2006005 Pages: 34
Price:
US$15.00 (Academic Rate:
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