A Constrained Choice? Impact of Concessionality Requirements on Borrowing Behavior

Author/Editor:

Calixte Ahokpossi ; Laurence Allain ; Giovanna Bua

Publication Date:

September 24, 2014

Electronic Access:

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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:

This paper uses the propensity matching score approach to assess the impact of the IMF’s debt limits policy (DLP) on borrowing behavior in countries eligible to borrow from its concessional lending window. The paper finds that countries under the DLP borrow significantly higher amounts of concessional resources. However, there is no evidence that the DLP significantly impacts the level of non-concessional borrowing nor the terms of such borrowing. This result is confirmed by the heterogeneity analysis, suggesting that the level of development, rather than concessionality requirements, is the key driver of non-concessional borrowing.

Series:

Working Paper No. 14/176

Subject:

English

Publication Date:

September 24, 2014

ISBN/ISSN:

9781498349727/1018-5941

Stock No:

WPIEA2014176

Price:

$18.00 (Academic Rate:$18.00)

Format:

Paper

Pages:

41

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