Assessing the Risk of Private Sector Debt Overhang in the Baltic Countries / Valerie Herzberg.

Format:

Book

Government document

Author/Creator:

Herzberg, Valerie.

Series:

IMF Working Papers; Working Paper ; No. 2010/250

IMF Working Papers

Language:

English

Subjects (All):

Credit--Baltic States.

Credit.

Credit control--Baltic States.

Credit control.

Physical Description:

1 online resource (46 p.)

Place of Publication:

Washington, D.C. : International Monetary Fund, 2010.

Language Note:

English

Summary:

Between 2000 and 2007 nonfinancial private sector credit expanded rapidly in the Baltic countries, resulting in a non-negligible build-up of debt. Could this legacy debt hold back the economic recovery of the region? This paper analyzes the setting in each of the three countries and, with the help of an experimental Debt Overhang Index (DOI), draws tentative conclusions for domestic demand.

Contents:

Cover Page; Title Page; Copyright Page; Contents; I. Executive Summary and Introduction; II. How Indebted is the Nonfinancial Private Sector in the Baltic Countries? Some Stylized Facts; 1. Private Sector Domestic Bank Credit; 2. Nonfinancial Private Sector Loans over GDP, 2008; 3. Leverage Ratios of the Household Sector; 4. Leverage Ratios of the Nonfinancial Corporate Sector; 1. Volatility of Operating Surplus; 5. Debt-to-Equity of Nonfinancial Corporate Sectors, 2008; 6. Debt Service Ratios; III. Will Private Sector Debt Weigh on Domestic Demand? Indications from a Debt Overhang Index

7. Debt Deleveraging Experience in 1990s Sweden and Post-Asian Crisis2. Debt Overhang Index for the Household Sector; 8. Distribution of Consumption and Leverage by Income Quintile; 3. Debt Overhang Index for the Corporate Sector; 9. Distribution of Corporate Investment and Leverage by Sector; 10. Cash Flows of Quoted Baltic Companies; 4. Construction Volumes and Office Vacancies; IV. A Preliminary Assessment of the DOI in the Baltic Countries; 11. GDP and Domestic Demand Since 2007/08 Peak; 12. Household Consumption and Gross Capital Formation in Euro Area

13. Consumption in the Baltic Countries14. Investment in the Baltic Countries; V. Conclusion and Policy Challenges; I. Credit Growth, House Prices and FDI in the Baltic Economies; II. Construction of the Debt Overhang Index; III. OLS Regressions of Household Consumption and Corporate Investment in the Baltic Countries and the Euro Area; References; Footnotes

Notes:

"November 2010."

Includes bibliographical references.

Description based on print version record.

ISBN:

9786613882011

9781462329496

1462329497

9781455227464

1455227463

9781283569569

1283569566

9781455210428

1455210420