External Borrowing by the Baltics, Russia and Other Countries of the Former Soviet Union: Developments and Policy Issues
June 1, 1997
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Summary
Many countries among the Baltics, Russia and other CIS states are increasingly borrowing on international capital markets, a development that generally reflects their success in achieving financial stabilization. In view of the low level of domestic saving and large capital requirements, recourse to foreign borrowing may of course generate significant benefits for these economies in transition. However, the rapid increase in external debt suggests that consideration also needs to be given to the risks from too high a dependence on foreign saving, including inter alia risk of the postponement of needed structural reforms.
Subject: Balance of payments, Debt service, Debt service payments, External debt, Foreign direct investment, Public debt
Keywords: B-, B-CIS country, Baltics, borrowing country, capital market borrowing, CIS country, country, creditor country, Debt service, Debt service payments, Eastern Europe, explicit government guarantee, external debt, external financing, financing government deficit, Foreign direct investment, government, government borrowing, government debt service, matter B-CIS borrower, short-term debt, state enterprise, transition country, WP
Pages:
43
Volume:
1997
DOI:
Issue:
072
Series:
Working Paper No. 1997/072
Stock No:
WPIEA0721997
ISBN:
9781451849301
ISSN:
1018-5941
