2024-03-28T09:08:36Zhttps://repositorio.bde.es/oai/requestoai:repositorio.bde.es:123456789/69302023-11-28T09:10:20Zcom_123456789_5661com_123456789_21col_123456789_5690
Repositorio Institucional
author
Acevedo, Paloma
author
Alberola, Enrique
author
Broto, Carmen
2019-08-10T17:50:31Z
2019-08-10T17:50:31Z
2007-10-15
ISSN: 0213-2710 (en papel)
https://repositorio.bde.es/handle/123456789/6930
000192985
DTRA-200733-eng
In recent years, for most emerging markets, public debt has decreased and its composition has evolved toward domestic currency. This progress is remarkable in terms of reduced financial vulnerability, which has been underpinned by favourable financing conditions and related deepening of local debt markets. In this paper, we assess the vulnerability reduction -conveyed in the ratio of total debt to GDP- achieved for six selected emerging economies, focusing on the importance of exchange rate evolution relative to the proactive policies that fiscal authorities have implemented to reduce the external exposure of debt. We first disentangle both components in the current structure of debt to show that proactive debt management has been the dominant factor in the reduction of the forex debt share. We then perform a stress test within a debt sustainability analysis framework. The results show that proactive debt management policies have -somehow paradoxically- entailed a short term cost, preventing a more dramatic reduction in the debt to GDP ratio, but this is more than compensated by the benefits in terms of financial vulnerability reduction in the face of financial turbulences, reducing simultaneously the probability of such contingency
eng
Reconocimiento-NoComercial-CompartirIgual 4.0 Internacional (CC BY-NC-SA 4.0)
External debt
Local debt markets
Financial crises
Debt sustainability analysis
Local debt expansion, vulnerability reduction? : an assessment for six crises-prone countries
Documento de trabajo
URL
https://repositorio.bde.es/bitstream/123456789/6930/1/dt0733e.pdf
File
MD5
8dc1c060a392bbbc7b70251a9b018469
854945
application/pdf
dt0733e.pdf
URL
https://repositorio.bde.es/bitstream/123456789/6930/2/dt0733e.pdf.txt
File
MD5
a691ac9d58a4708eceaaeb0db5fe866e
77155
text/plain
dt0733e.pdf.txt