Prepared by the Policy Development and Review Department, in consultation with other departments
| Executive Summary |
|
| I. |
Introduction |
|
| II. |
Public and Private Sector Balance Sheets in Emerging Market Countries: Recent Trends and Key Risks |
| |
A. |
The Public Sector's Balance Sheet |
| |
B. |
The Financial Sector's Balance Sheet |
| |
C. |
The Nonfinancial Private Sector's Balance Sheet |
| |
D. |
Presenting Economy-Wide Vulnerabilities |
|
| III. |
Balance Sheet Developments in Recent Financial Crises: Some Country Examples |
| |
A. |
Argentina: How Weaknesses in Private Sector Balance Sheets Contributed
to the Crisis of 2001-02 |
| |
B. |
Uruguay: How a Run on Banks Led to a Sovereign Debt Crisis |
| |
C. |
Turkey: How Banks' Balance Sheet Positions Contributed to the
Crisis of 2000-01 |
| |
D. |
Brazil: How the Public Sector Leveraged its Balance Sheet to
Insulate the Private Sector from the 1998-1999 Currency Crisis |
| |
E. |
Peru: How A Highly Dollarized Economy Remained Resilient in
the Face of Regional Financial Turmoil |
| |
F. |
Lebanon: How Confidence Can Uphold Fragile Balance Sheets |
|
| IV. |
Conclusions |
|
| References |
|
Annex I
Regional Groupings |
|
Annex II
Definitions and Sources for Chapter II |
|
| Boxes |
| 1. |
The Balance Sheet Approach in the Recent Literature |
| 2. |
The Balance Sheet Approach in Practice |
| 3. |
Extensions of the Balance Sheet Approach |
|
| Tables |
| III.A.1 |
Argentina: Foreign-Currency Denominated Debt of the Corporate
Sector |
| III.A.2 |
Argentina: Principal Assets and Liabilities of the Argentine
Banking System |
| III.B.1 |
Uruguay: Deposit Structure, by Residency |
| III.E.1 |
Peru: Foreign-Currency Debt and Foreign-Currency Income
in the Private Nonfinancial Sector
|
|
| Figures |
| II.1 |
Public Debt |
| II.2 |
Public Domestic vs. Public External Debt |
| II.3 |
Public Domestic vs. Foreign-Currency Debt |
| II.4 |
Privately-Held vs. Officially-Held Public Debt |
| II.5 |
Average Maturity of Public External Debt |
| II.6 |
Structure of Domestic Government Bonds |
| II.7 |
Public Sector Debt Sustainability Assessments |
| II.8 |
Primary Balance |
| II.9 |
Total Public External Debt |
| II.10 |
Gross and Net Reserves |
| II.11 |
Banking Sector Assets |
| II.12 |
Credit to the Private vs. Public Sectors |
| II.13 |
Foreign-Currency Deposits |
| II.14 |
Domestic Foreign-Currency Loans |
| II.15 |
Short-Term External Debt and Foreign-Currency Deposits |
| II.16 |
Nonfinancial Private Sector Debt |
| II.17 |
Nonfinancial Private Sector External Debt and Private Domestic
Foreign-Currency Debt |
| II.18 |
Liabilities of BIS-Reporting Banks to Nonfinancial Sector |
| II.19 |
Nonfinancial Private Sector External Debt and Private Domestic
Foreign-Currency Debt |
| II.20 |
Economy-Wide Vulnerabilities, Emerging Markets |
| II.21 |
Economy-Wide Vulnerabilities, Regional |
| II.22 |
Vulnerabilities in Crisis and Non-Crisis Countries |
| III.A.1 |
Argentina: Maturity Mismatches: With and Without Foreign-Currency
Deposits |
| III.B.1 |
Uruguay: Dollarization of Deposits and Loans |
| III.B.2 |
Uruguay: System-Wide Foreign-Currency Balance Sheet |
| III.B.3 |
Uruguay: Maturity Mismatch and Domestic Foreign-Currency Deposits |
| III.B.4 |
Uruguay: Foreign-Currency Balance Sheets |
| III.B.5 |
Uruguay: Foreign-Currency Balance Sheets |
| III.B.6 |
Uruguay: Gross Reserves |
| III.B.7 |
Uruguay: Combined Public-Sector Debt |
| III.C.1 |
Turkey: Primary Auction Interest Rates in Real Terms |
| III.C.2 |
Turkey: Banking Sector Assets |
| III.C.3 |
Turkey: Funding from Foreign Banks |
| III.C.4 |
Turkey: Banks' Net Open Foreign-Currency Positions |
| III.C.5 |
Turkey: Change in Public Debt to GDP Ratio: Component Contribution
by Year |
| III.C.6 |
Turkey: Public Debt by Instrument |
| III.D.1 |
Brazil: Growth Effect of Real Currency Crises |
| III.D.2 |
Brazil: NFA of Banking System |
| III.D.3 |
Brazil: Corporate Sector External Debt |
| III.D.4 |
Brazil: Composition of Federal Debt |
| III.D.5 |
Brazil: Net Foreign-Currency Assets and Composition |
| III.D.6 |
Brazil: Key Vulnerability Ratios |
| III.E.1 |
Peru: Share of Foreign Currency and External Debt |
| III.E.2 |
Peru: Foreign-Currency Mismatch |
| III.E.3 |
Peru: Liquid Dollar Assets Versus Banks' Short-Term Dollar
Liabilities |
| III.E.4 |
Peru: Liquid Dollar Assets Versus Banks' Dollar Liabilities
and Short-Term Foreign Debt |
| III.E.5 |
Peru: External and Financial Vulnerability Ratios |
| III.F.1 |
Lebanon: Public Sector Balance Sheet |
| III.F.2 |
Lebanon: Private Financial Sector Balance Sheet |
