Chapter 8. Debt Restructuring in the Caribbean—The Recent Experience
Author:
Joel Chiedu Okwuokei
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Bert van Selm
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Language:
English
Print Publication Date:
13 Nov 2017
Keywords:
BOOK; cost; bank; IMF staff calculation; debt sustainability; restructured debt; debt dynamics; debt operation; Debt restructuring; Debt sustainability; Fiscal consolidation; Caribbean; Global

Abstract

Many economies in the Caribbean region have been caught in a low growth–high debt trap for decades. Debt has been built up over the years through large fiscal deficits, the costs associated with natural disasters, public enterprise borrowing, and off-balance-sheet spending, including for financial sector bail-outs. High levels of debt have, in turn, had a negative impact on growth, notably because high debt contributes to macroeconomic uncertainty and because the high cost of debt service reduces the fiscal space for investing in human and physical infrastructure that would support growth.1

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Cover Unleashing Growth and Strengthening Resilience in the Caribbean
Unleashing Growth and Strengthening Resilience in the Caribbean
ISBN:
9781484315194
Publication Date:
13 Nov 2017
Publisher:
International Monetary Fund
DOI:
https://doi.org/10.5089/9781484315194.071
Pages:
378