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Título:
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Official sector lending strategies during the euro area crisis
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Autor/a:
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Corsetti, Giancarlo; Erce, Aitor; Uy, Timothy
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Abstract:
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In response to the euro area crisis, European policymakers took a gradual, incremental approach
to official lending, at first relying on the approach followed by the International Monetary Fund,
then developing their own crisis resolution framework. We review this development, marked by a
substantial divergence in the terms of official loans offered to the crisis countries by the IMF and
the euro area official lenders. Based on a unique dataset, we use event analysis to assess the
impact of changing maturity and spreads of official loans on bond yields, liquidity and market
access. In light of the euro area experience, we discuss arguments for rebalancing Debt
Sustainability Analysis and programme design towards cash-flow management. While the official
assistance granted to crisis countries in the euro area may not be replicable elsewhere, key
lessons from it that could foster a reconsideration of the modalities by which official lending
institutions handle crises. |
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Abstract:
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The ADEMU Working Paper Series is being supported by the European Commission Horizon 2020 European Union funding for Research & Innovation, grant agreement No 649396. |
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Materia(s):
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-Crisis management
-Debt sustainability
-Loans maturity
-Mearket access
-Private sector involvement
-Seniority
-Yield curve |
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Derechos:
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This is an Open Access article distributed under the terms of the Creative Commons Attribution License Creative Commons Attribution 4.0 International, which permits unrestricted use, distribution and reproduction in any medium provided that the original work is properlyattributed.
https://creativecommons.org/licenses/by/4.0/
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Tipo de documento:
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Documento de trabajo |
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