Assessing the Risk of Private Sector Debt Overhang in the Baltic Countries

 
Author/Editor: Herzberg, Valerie
 
Publication Date: November 01, 2010
 
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Disclaimer: 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: Between 2000 and 2007 nonfinancial private sector credit expanded rapidly in the Baltic countries, resulting in a non-negligible build-up of debt. Could this legacy debt hold back the economic recovery of the region? This paper analyzes the setting in each of the three countries and, with the help of an experimental Debt Overhang Index (DOI), draws tentative conclusions for domestic demand.
 
Series: Working Paper No. 10/250
Subject(s): Baltics | Credit expansion | Cross country analysis | Economic models | Economic recovery | Nonbank financial sector | Private sector | Public debt | Estonia | Latvia | Lithuania

Author's Keyword(s): credit | private sector debt | Baltic economies
 
English
Publication Date: November 01, 2010
Format: Paper
Stock No: WPIEA2010250 Pages: 35
Price:
US$18.00 (Academic Rate:
US$18.00 )
 
 
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