## External Finance and Foreign Debt in Central and Eastern European Countries

_IMF Working Papers, October 1, 1997_

## Source details

**Canonical URL:** [External Finance and Foreign Debt in Central and Eastern European Countries](https://www.imf.org/en/publications/wp/issues/2016/12/30/external-finance-and-foreign-debt-in-central-and-eastern-european-countries-2354)

## Other formats

- [Markdown version](/en/publications/wp/issues/2016/12/30/external-finance-and-foreign-debt-in-central-and-eastern-european-countries-2354/index.md)
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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

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### 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

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## Content in this bundle

- **External Finance and Foreign Debt in Central and Eastern European Countries - WP/97/134**
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_Source: https://www.imf.org/en/publications/wp/issues/2016/12/30/external-finance-and-foreign-debt-in-central-and-eastern-european-countries-2354_