Series: IMF Working Papers
Author(s): Sophia Chen , and Yinqiu Lu
Publisher: INTERNATIONAL MONETARY FUND
Publication Date: 22 December 2016
Keywords: Europe, Cyprus, Corporate sector, Investment, Corporate investment, Balance sheets, balance sheet, leverage, leverage Author&;amp;#x2019;s, Financial Markets and the Macroeconomy
Fixed investment was the most important contributing factor to the boom-bust cycle in Cyprus over the last decade. Investment boomed during a credit boom in mid-2000s, during which the corporate sector borrowed hea...