Principles of Household Debt Restructuring
IMF Staff Position Notes, June 26, 2009
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- Principles of Household Debt Restructuring
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Bibliographic details
- Authors: Thomas Laryea, Luc Laeven
- Published: June 26, 2009
- Series: IMF Staff Position Notes
- DOI: https://doi.org/10.5089/9781462376773.004
Overview
- Paper examines estimated compliance with the macroeconomic convergence targets for 2008, based on estimates contained in the IMF’s Regional Economic Outlook: Sub-Saharan Africa (the REO).
- Focus on SADC’s regional economic integration agenda and its macroeconomic convergence program intended to achieve and maintain macroeconomic stability, contribute to faster economic growth, and lay the basis for eventual monetary union.
- Targets for key macroeconomic variables have been set out for 2008, 2012, and 2018.
Key findings and analysis
- Most SADC member states recorded solid macroeconomic performance in recent years, generally coming close to, and in many cases surpassing, the convergence targets specified for 2008.
- A notable exception is Zimbabwe, which was in the grip of hyperinflation.
- The macroeconomic targets for 2012 are described as ambitious and, in some cases, warrant further evaluation, given that achieving the targets may be neither necessary nor sufficient to achieve good macroeconomic results.
Policy implications and recommendations (implicit in text)
- Reassess the 2012 convergence targets where ambition may exceed practical relevance to achieving desirable macroeconomic outcomes.
- Maintain emphasis on macroeconomic stability as a pathway to faster growth and potential monetary union, while recognizing country-specific constraints (for example, hyperinflation in Zimbabwe).
Scope and topical coverage
- Subjects: Asset and liability management; Banking; Credit; Debt burden; Debt restructuring; Distressed assets; External debt; Financial institutions; Financial sector policy and analysis; Loans; Money.
- Keywords included in the source: bank; borrower; Credit; creditor debt renegotiation; debt; Debt burden; Debt restructuring; Distressed assets; government bank recapitalization program; household debt problem; loan; Loans; payment moratorium; restructuring program; SPN.
Content in this bundle
- Executive Summary