External Borrowing by the Baltics, Russia and Other Countries of the Former Soviet Union: Developments and Policy Issues

June 1, 1997

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External Borrowing by the Baltics, Russia and Other Countries of the Former Soviet Union: Developments and Policy Issues, (USA: International Monetary Fund, 1997) accessed November 21, 2024

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

Many countries among the Baltics, Russia and other CIS states are increasingly borrowing on international capital markets, a development that generally reflects their success in achieving financial stabilization. In view of the low level of domestic saving and large capital requirements, recourse to foreign borrowing may of course generate significant benefits for these economies in transition. However, the rapid increase in external debt suggests that consideration also needs to be given to the risks from too high a dependence on foreign saving, including inter alia risk of the postponement of needed structural reforms.

Subject: Balance of payments, Debt service, Debt service payments, External debt, Foreign direct investment, Public debt

Keywords: B-, Baltics, B-CIS country, Borrowing country, Capital market borrowing, CIS country, Country, Creditor country, Debt service, Debt service payments, Eastern Europe, Explicit government guarantee, External debt, External financing, Financing government deficit, Foreign direct investment, Government, Government borrowing, Government debt service, Matter B-CIS borrower, Short-term debt, State enterprise, Transition country, WP

Publication Details

Pages:

43
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 1997/072
Stock No:

WPIEA0721997
ISBN:

9781451849301
ISSN:

1018-5941

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