Departmental Papers

Debt Maturity and the Use of Short-Term Debt: Evidence form Sovereigns and Firms

By Sophia Chen, Paola Ganum, Lucy Qian Liu, Leonardo Martinez, Maria Soledad Martinez Peria

February 5, 2019

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Sophia Chen, Paola Ganum, Lucy Qian Liu, Leonardo Martinez, and Maria Soledad Martinez Peria. Debt Maturity and the Use of Short-Term Debt: Evidence form Sovereigns and Firms, (USA: International Monetary Fund, 2019) accessed September 20, 2024

Disclaimer: The views expressed herein are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary

The maturity structure of debt can have financial and real consequences. Short-term debt exposes borrowers to rollover risk (where the terms of financing are renegotiated to the detriment of the borrower) and is associated with financial crises. Moreover, debt maturity can have an impact on the ability of firms to undertake long-term productive investments and, as a result, affect economic activity. The aim of this paper is to examine the evolution and determinants of debt maturity and to characterize differences across countries.

Subject: Bonds, Currencies, Financial institutions, Loans, Money, Public debt, Syndicated loans

Keywords: Average weighted maturity, Bond issuance, Bonds, Currencies, Currency tradeoff, Debt, Debt dilution problem, Debt maturity, DP, DPPP, EMDEs, Global, Government bond, Loans, Maturity, Maturity structure, Ratio in AEs, Short-term debt, Short-term debt debt ratio, Syndicated loans, Use of short-term debt, Weighted average maturity, World Bank debt statistics

Publication Details

  • Pages:

    77

  • Volume:

    ---

  • DOI:

    ---

  • Issue:

    ---

  • Series:

    Departmental Paper No. 2019/001

  • Stock No:

    DMUSDEA

  • ISBN:

    9781484380536

  • ISSN:

    2616-5333

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