External debt stocks and flows, long term

2016 ◽  
pp. 203-204
Keyword(s):  
External Debt ◽  
Stocks And Flows

Reshaping the Economic Structure in Argentina: The Role of External Debt during the Macri Administration (2015–2019)

2021 ◽  
pp. 048661342097642
Author(s):  
Juan E. Santarcángelo ◽  
Juan Manuel Padín
Keyword(s):  
External Debt ◽  
Economic Structure ◽  
The United States ◽  
Jel Classification ◽  
Financial Capital ◽  
Economic Policies ◽  
Right Wing ◽  
Long Term Effects

Argentina’s right-wing shift in the 2015 presidential election concluded twelve years of center-left rule. The elected president, Mauricio Macri, claimed that the economy would experience normalization of existing imbalances and recover its strength in a “new political era.” However, the new administration quickly restored the dominance of neoliberal economic policies through a comprehensive set of initiatives, which centrally included the return to international financial debt and equity markets and submission to the International Monetary Fund’s (IMF) rules. This article analyzes Argentina’s external-debt-growth process and discusses its objectives and long-term effects. This paper posits that the indebtedness process carried out by the Macri administration—and its modality—not only increased the relevance of financial capital in the Argentine economy but also structurally conditioned any future nonorthodox alternative path of development. This outcome cannot be understood without taking into account the deliberate role of the United States, the IMF, and the top companies that operate in Argentina, as well as the complicity of many political sectors. JEL Classification: H63, F34, F63

Accounting Conservatism and Firm Growth Financed by External Debt

2016 ◽  
Vol 32 (2) ◽  
pp. 182-208 ◽  
Author(s):  
Tony Kang ◽  
Gerald J. Lobo ◽  
Michael C. Wolfe
Keyword(s):  
Firm Growth ◽  
Positive Relationship ◽  
External Debt ◽  
Debt Maturity ◽  
Accounting Conservatism ◽  
Debt Contracting ◽  
Conservative Accounting ◽  
Agency Risk

Previous research shows that accounting conservatism facilitates debt contracting. Extending this line of literature, we examine whether the role of accounting conservatism in accessing external debt to attain firm growth varies with its maturity. We find evidence of a positive relationship between conservatism and debt maturity. We also observe a positive relationship between conservative accounting and future growth funded by all classes of debt, but this relation is due to long-term rather than short-term debt, which is less prone to agency risk. Furthermore, the associations between conservatism and debt maturity and conservatism and growth financed by long-term debt are mostly observed for firms with fewer anti-takeover provisions in place. These findings suggest that the demand for accounting conservatism is not uniform across different debt maturity horizons.

scholarly journals Maturity, Indebtedness, and Default Risk

2012 ◽  
Vol 102 (6) ◽  
pp. 2674-2699 ◽  
Author(s):  
Satyajit Chatterjee ◽  
Burcu Eyigungor
Keyword(s):  
Standard Deviation ◽  
Default Risk ◽  
Sovereign Debt ◽  
External Debt ◽  
Equilibrium Price ◽  
Short Term ◽  
Price Function ◽  
Output Ratio ◽  
Novel Method

We advance quantitative-theoretic models of sovereign debt by proving the existence of a downward sloping equilibrium price function for long-term debt and implementing a novel method to accurately compute it. We show that incorporating long-term debt allows the model to match Argentina's average external debt-to-output ratio, average spread on external debt, the standard deviation of spreads, and simultaneously improve upon the model's ability to account for Argentina's other cyclical facts. We also investigated the welfare properties of maturity length and showed that if the possibility of self-fulfilling rollover crises is taken into account, long-term debt is superior to short-term debt. (JEL E23, E32, F34, O11, O19)

Zimbabwe faces uphill task normalising donor relations

2015 ◽  
Keyword(s):  
External Debt ◽  
Job Creation ◽  
Development Plan ◽  
Content Type ◽  
Finance Minister ◽  
Donor Relations ◽  
Labour Costs ◽  
The Government ◽  
Economic Outlook

Subject Zimbabwe economic outlook. Significance On November 26 Finance Minister Patrick Chinamasa presented the 2016 budget articulating the government's IMF-backed plan to clear the backlog of external debt arrears to international creditors. The aim is to normalise relations with Western donors after 15 years of isolation. The government faces a deepening employment crisis, an unfunded development plan and deflationary risks. Impacts The Labour Amendment Bill adopted in August will raise labour costs and discourage job creation. Some deals signed during Xi's visit such as funding for fibre optic broadband may improve long-term competitiveness. However, others such as an agreement for a new Chinese-built parliament will add to the debt load.

Nigerian naira will stay static despite high oil price

2018 ◽  
Keyword(s):  
Exchange Rate Regime ◽  
External Debt ◽  
Main Interest ◽  
Content Type ◽  
Multiple Exchange ◽  
The Government ◽  
The Impact ◽  
Capital Intensive ◽  
Impact Of Falling

Subject Nigeria's forex dynamics Significance The multiple exchange rate regime of the Central Bank of Nigeria (CBN) has been vindicated by the naira’s stability over the last nine months. However, the ongoing segmentation of the foreign exchange (forex) market means that each of its windows now has its own set of fundamental drivers, blunting the ability of rising dollar inflows from high oil prices to bring currency appreciation. While this arrangement benefits imports as the government implements its capital-intensive economic recovery plan, it comes at the expense of non-oil private sector growth which has struggled to maintain upward momentum since the end of the recession last year. Impacts The CBN’s decision to hold its main interest rate at a record 14% signals lingering concerns over IEFX outflows ahead of the 2019 elections. The government’s push to re-balance its debt profile by increasing the ratio of external debt will weigh on the naira’s long-term outlook. The impact of falling inflation on the naira is ambiguous given existing import bans and the lack of monetary policy response from the CBN.

The Causal Relationship Between Foreign Debt and Economic Growth: Evidence from Commonwealth Independent States

2021 ◽  
pp. 001573252110183
Author(s):  
Nermin Yasar
Keyword(s):  
Economic Growth ◽  
Causal Relationship ◽  
Economic Transition ◽  
Foreign Debt ◽  
External Debt ◽  
Value Added ◽  
Transition Process ◽  
Jel Classification ◽  
Independent States

This study investigates the relationship between external borrowing and economic growth in the Commonwealth Independent States during the period 1995–2018. Autoregressive distributed lag (ARDL) model is employed to determine the co-integration relationship among the series and then vector error correction model (VECM) is used to analyse the causality between external debt and income. The obtained results suggest that there is a negative long-term unidirectional causal relationship running from external debt to GDP presenting a strong evidence of existence of debt overhang hypothesis. The possible reasons for this unidirectional causal relationship can be explained by poor management of provided financial resources and incomplete governance in economic transition process along with structural rigidities and immature institutions in these countries which, in the long term, resulted in insufficient capital charged to service external debt. The policymakers in these post-Soviet countries should not use foreign loans to capitalise the deficits in the economies; instead, they should be more determined in employing these funds in the areas that will create national value-added production and, thus, future income. JEL Classification: C10, F34, H63

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