Re-Accessing International Capital Markets After Financial Crises: Some Empirical Evidence

Author/Editor:

Luisa Zanforlin

Publication Date:

June 1, 2007

Electronic Access:

Free Download. Use the free Adobe Acrobat Reader to view this PDF file

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:

The paper analyzes the factors that contribute to the re-access of countries that emerge from a severe financial crisis to the international capital markets. It conjectures that these factors depend on a sovereign's commitment and ability to repay its foreign debt, signaled by sound macroeconomic policies, and the global liquidity environment. Using panel data for 49 countries over a 24-year period, the analysis uses a simple probit approach to show that, indeed, a sustainable debt profile and a sound external position, accompanied by a favorable global liquidity environment, are key factors in affecting the likelihood a sovereign reaccesses international capital markets.

Series:

Working Paper No. 2007/136

Subject:

Debt service Debt service ratios Financial crises International capital markets International liquidity

English

Publication Date:

June 1, 2007

ISBN/ISSN:

9781451867008/1018-5941

Stock No:

WPIEA2007136

Pages:

20

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