External Finance and Foreign Debt in Central and Eastern European Countries
October 1, 1997
Download PDF
More Formats on IMF eLibrary
Order a Print CopyDisclaimer: 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
External finance can provide a positive contribution to the transition process and can enhance welfare in former centrally planned economies, especially when domestic saving has not fully recovered after the initial contraction. However, as was pointed out at the beginning of the transition process, foreign debt could exert a strong constraint on the borrowing capacity of some central and eastern European countries. This paper analyzes the determinants of net external borrowing in ten transition economies during 1990-95 and assesses the impact of the outstanding stock of foreign liabilities on net financial inflows.
Subject: Balance of payments, Debt burden, Export performance, Exports, External debt, Foreign direct investment, International trade
Keywords: Baltics, Central and Eastern Europe, debt, Debt burden, debt obligation, debt-creating inflow, debt-export measure, debt-export ratio, Eastern Europe, Europe, Export performance, export ratio, Exports, Foreign direct investment, GDP, GDP ratio, net, nominal exchange rate, saving-investment imbalance, term debt, transition economy, Western Europe, WP
Pages:
28
Volume:
1997
DOI:
Issue:
134
Series:
Working Paper No. 1997/134
Stock No:
WPIEA1341997
ISBN:
9781451855562
ISSN:
1018-5941
