External Finance and Foreign Debt in Central and Eastern European Countries

IMF Working Papers, October 1, 1997

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External Finance and Foreign Debt in Central and Eastern European Countries

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Bibliographic details

• Authors: Stefano Manzocchi
• Published: October 1, 1997
• Series: IMF Working Papers
• DOI: https://doi.org/10.5089/9781451855562.001

Summary

• Author: Stefano Manzocchi
• Date: October 1, 1997
• This Working 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.
• Key contextual point: External finance can positively contribute to the transition process and enhance welfare in former centrally planned economies, especially when domestic saving has not fully recovered after the initial contraction; however, foreign debt could exert a strong constraint on borrowing capacity for some central and eastern European countries.

Major findings and analytical focus

• Scope: Ten transition economies over 1990-95.
• Core questions:
  • What are the determinants of net external borrowing in the sample countries?
  • How does the outstanding stock of foreign liabilities affect net financial inflows?
• Conceptual emphasis:
  • Role of external finance in transition economies where domestic saving remains low after initial contraction.
  • Potential constraint posed by accumulated foreign debt on future borrowing capacity.

Subjects and keywords (as presented)

• Subjects: 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

Content in this bundle

• External Finance and Foreign Debt in Central and Eastern European Countries - WP/97/134
  • External Finance and Foreign Debt in Central and Eastern European Countries - WP/97/134 (Markdown version)
  • External Finance and Foreign Debt in Central and Eastern European Countries - WP/97/134 (PDF)