Sectoral Balance Sheet Mismatches and Macroeconomic Vulnerabilities in Colombia, 1996-2003
January 1, 2006
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Summary
We employ an extended version of the Allen et al. (2002) Balance Sheet Approach to examine macroeconomic vulnerabilities in Colombia between 1996 and 2003, based on an unusually rich data set. We find that vulnerabilities existing prior to Colombia's 1999 recession-high levels of private debt, a large negative foreign currency position of the corporate sector, and banks' exposure to stretched households and companies-receded subsequently. New vulnerabilities emerged, however, especially the high level of public debt accumulated until end-2003, and growing exposure of the financial sector to the sovereign.
Subject: Banking, Corporate sector, Economic sectors, Expenditure, Financial statements, Pension spending, Public debt, Public financial management (PFM), Public sector
Keywords: balance sheet, balance sheet contagion, bank, bank intermediary, Colombia, Corporate sector, debt, East Asia, emerging market economy, Financial statements, foreign currency, foreign currency assets, foreign currency position, lending to company, liaibilities in Colombia, Macroeconomic Vulnerabilities, mortgage debt, Pension spending, Public sector, Sectoral Balance Sheet Analysis, WP
Pages:
34
Volume:
2006
DOI:
Issue:
005
Series:
Working Paper No. 2006/005
Stock No:
WPIEA2006005
ISBN:
9781451862652
ISSN:
1018-5941
