Costs of Sovereign Defaults: Restructuring Strategies, Bank Distress and the Capital Inflow-Credit Channel »
Series: IMF Working Papers
Author(s): Tamon Asonuma , Marcos Chamon , Aitor Erce , and Akira Sasahara
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 25 March 2019
Keywords: Sovereign debt restructuring, Business cycles, Capital inflows, Domestic debt, Current account deficits, Sovereign Debt, Sovereign Defaults, Sovereign Debt Restructurings, GDP Growth, Investment
Sovereign debt restructurings are associated with declines in GDP, investment, bank credit, and capital flows. The transmission channels and associated output and banking sector costs depend on whether the restruct...