Assessing the Risk of Private Sector Debt Overhang in the Baltic Countries
November 1, 2010
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Summary
Between 2000 and 2007 nonfinancial private sector credit expanded rapidly in the Baltic countries, resulting in a non-negligible build-up of debt. Could this legacy debt hold back the economic recovery of the region? This paper analyzes the setting in each of the three countries and, with the help of an experimental Debt Overhang Index (DOI), draws tentative conclusions for domestic demand.
Subject: Consumption, Corporate sector, Debt burden, Financial statements, Income
Keywords: debt, Estonia, Latvia, WP
Pages:
35
Volume:
2010
DOI:
Issue:
250
Series:
Working Paper No. 2010/250
Stock No:
WPIEA2010250
ISBN:
9781455209507
ISSN:
1018-5941
