Borrowing Costs after Sovereign Debt Relief

• 成果类型: Article
• 署名作者: Lang, Valentin; Mihalyi, David; Presbitero, Andrea F.
• 署名单位: University of Mannheim; Leibniz Association; Institut fur Weltwirtschaft an der Universitat Kiel (IFW); International Monetary Fund; Center for Economic & Policy Research (CEPR)
• 刊物名称: AMERICAN ECONOMIC JOURNAL-ECONOMIC POLICY
• ISSN/ISSBN: 1945-7731
• DOI: 10.1257/pol.20210166
• 发表日期: 2023
• 页码: 331-358
• 关键词: spillovers; credit; liquidity; inference

摘要

Can debt moratoria help countries weather negative shocks? We exploit the Debt Service Suspension Initiative (DSSI) to study the bond market effects of deferring official debt repayments. Using daily data on sovereign bond spreads and synthetic control meth-ods, we show that countries eligible for official debt relief experience a larger decline in borrowing costs compared to similar, ineli-gible countries. This decline is stronger for countries that receive a larger relief, suggesting that the effect works through liquidity provision. By contrast, the results do not support the concern that official debt relief could generate stigma on financial markets. (JEL F34, G12, H63, O16)