Costs of sovereign debt crises: Restructuring strategies and bank intermediation

• 成果类型: Article
• 署名作者: Asonuma, Tamon; Chamon, Marcos; Erce, Aitor; Sasahara, Akira
• 署名单位: International Monetary Fund; Universidad Publica de Navarra; Keio University
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/j.jinteco.2024.104002
• 发表日期: 2024
• 关键词: sovereign debt; sovereign default; Debt restructuring; GDP growth; INVESTMENT; Bank intermediation

摘要

Sovereign debt restructurings are associated with declines in the growth of GDP, investment, bank credit to the private sector and capital flows. Our empirical findings show that the intensity of these losses depends on two aspects: whether the restructuring preempts a default and the extent of the reliance of the country's private sector on domestic bank credit. Post-default restructurings are associated with worse outcomes than restructurings that take place preemptively without missing payments and going into default. Much of that difference is driven by restructurings in countries with relatively large banking sectors, in particular during post-default episodes.