Structural Fiscal Imbalances, Financial Repression and Sovereign Debt Sustainability in Southern Europe, 1970s–1990s

2017 ◽  
pp. 262-298
Author(s):  
Stefano Battilossi
Keyword(s):  
Sovereign Debt ◽  
Southern Europe ◽  
Debt Sustainability ◽  
Financial Repression

Risk Management Optimization for Sovereign Debt Restructuring

2015 ◽  
Vol 6 (2) ◽  
Author(s):  
Andrea Consiglio ◽  
Stavros A. Zenios
Keyword(s):  
Risk Management ◽  
Scenario Analysis ◽  
Sovereign Debt ◽  
Risk Measure ◽  
Policy Tools ◽  
Debt Restructuring ◽  
Tail Risk ◽  
Debt Sustainability ◽  
Scenario Optimization ◽  
Management Optimization

AbstractDebt restructuring is one of the policy tools available for resolving sovereign debt crises and, while unorthodox, it is not uncommon. We propose a scenario analysis for debt sustainability and integrate it with scenario optimization for risk management in restructuring sovereign debt. The scenario dynamics of debt-to-GDP ratio are used to define a tail risk measure, termed

Cross-Country Experience with Restructuring of Sovereign Debt and Restoring Debt Sustainability

Policy Papers ◽  
2006 ◽  
Vol 2006 (49) ◽  
Author(s):  
Keyword(s):  
Sovereign Debt ◽  
Debt Relief ◽  
Economic Conditions ◽  
Stress Tests ◽  
Debt Sustainability ◽  
Cross Country

The paper is organized as follows: Section II provides a cross-country overview of the economic conditions, including the composition of sovereign debt and its dynamics prevailing prior to the debt operations, and a discussion of the scope and outcomes—in terms of the debt relief provided by creditors—of the debt restructurings. Section III analyzes the debt profile, liquidity position, DSAs and accompanying stress tests, and an EWS to assess whether debt sustainability has been restored in each country case. Conclusions are set out in Section IV.

scholarly journals The IMF Debt Sustainability Analysis: Issues and Problems

2015 ◽  
Vol 6 (2) ◽  
Author(s):  
Martin Guzman ◽  
Daniel Heymann
Keyword(s):  
Interest Rate ◽  
Interest Rates ◽  
Sovereign Debt ◽  
Analysis Framework ◽  
Debt Sustainability ◽  
Yield Spreads ◽  
Sustainability Analysis ◽  
Market Interest Rate ◽  
Evaluation Exercise ◽  
The Imf

AbstractThis paper reviews the IMF DSA (Debt Sustainability Analysis) framework. We first examine the concept of debt sustainability, and argue that the evaluation exercise necessarily entails putting into question market expectations embodied in yield spreads. When the views of the analyst on the capacity of debt repayment differ from the ones reflected in market interest rate premiums, the use of market interest rates for assessing debt sustainability leads to an inconsistency that will in turn bias the assessment. We then show that IMF projections for assessing debt sustainability have been repeatedly biased, which may have contributed to distort the timing of sovereign debt restructurings and the consequent processes of renegotiation. We conclude with a discussion on how the existing DSA framework could be improved.

From agenda setters to agenda takers? The determinants of party issue attention in times of crisis

2018 ◽  
Vol 24 (1) ◽  
pp. 65-77 ◽  
Author(s):  
Enrico Borghetto ◽  
Federico Russo
Keyword(s):  
Sovereign Debt ◽  
Debt Crisis ◽  
Political Representation ◽  
Economic Conditions ◽  
Southern Europe ◽  
Sovereign Debt Crisis ◽  
Eurozone Crisis ◽  
Democratic Representation ◽  
Issue Attention ◽  
The Impact

Question time represents one of the most relevant institutional arenas where parties compete to get their favourite issues on the parliamentary agenda. Parties select which issue to address by weighing up two commitments simultaneously: fulfilling the party mandate received by their voters at election time and responding to the current priorities of voters. This article assesses the extent to which the recent sovereign debt crisis impacted the way parties balance these two imperatives of democratic representation. Through the issue coding of around 10,000 parliamentary oral questions tabled in Italy, Portugal and Spain between 2003 and 2014, the analysis shows that the worsening of economic conditions intensified the impact of citizens’ priorities. However, there is no clear evidence of a decline in the importance of the party mandate for either the majority or opposition parties. These findings offer insights on the topic of party political representation in Southern Europe and whether it was affected by the Eurozone crisis.

scholarly journals THE DEADLY EMBRACE BETWEEN THE BANKS AND THE STATE IN SPAIN, 1850-2015

2017 ◽  
Vol 35 (3) ◽  
pp. 387-414 ◽  
Author(s):  
Francisco Comín ◽  
Joaquim Cuevas
Keyword(s):  
Public Debt ◽  
Sovereign Debt ◽  
Banking Sector ◽  
Banking Regulation ◽  
The State ◽  
Debt Management ◽  
Stock Exchanges ◽  
Budget Deficits ◽  
Public And Private ◽  
Financial Repression

AbstractThis paper focusses on the financial relations between the banking sector and the Treasury in Modern Spain. Tax systems have been insufficient, generating a chronic budget deficit. This drove to irresponsible public debt management, being the State a serial defaulter until 1987. This prevented the budget deficits could be financed by sovereign debt issued on the stock exchanges, and forced the state to resort to banks (public and private). The new series of public debt banks portfolios evolution is explained by their pursuit of returns and by changes in banking regulation and financial repression, which favoured the bankingstatus quo. The paper analyses the causes of banking regulation, derived from the public borrowing policy and also from the banking lobbying strategy. It examines the consequences of the deadly banking-state embrace which brought about the interconnection between fiscal and banking crises.

SOVEREIGN DEBT SUSTAINABILITY IN ADVANCED ECONOMIES

2015 ◽  
Vol 13 (3) ◽  
pp. 381-420 ◽  
Author(s):  
Fabrice Collard ◽  
Michel Habib ◽  
Jean-Charles Rochet
Keyword(s):  
Sovereign Debt ◽  
Debt Sustainability ◽  
Advanced Economies
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