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Western Hemisphere > Argentina

You are looking at 1 - 10 of 78 items for :

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Cover Policy Papers
Staff Guidance Note on Information Sharing in The Context of Sovereign Debt Restructurings
International Monetary Fund. Legal Dept.
and
International Monetary Fund. Strategy, Policy, & Review Department
The guidance note sets out principles governing information sharing in the context of sovereign debt restructurings. It restates the existing Fund governance and policy guidelines for information sharing to help inform and harmonize practices across Fund country teams. In addition to outlining guiding principles applicable to information sharing, it provides guidance on what level of information can be shared during each stage of the restructuring and program design process and in the surveillance context
Keywords:
confidentiality; debt relief; debt sustainability analysis; executive board documents; external debt; fund policies; policy framework papers; political economy; publications; public debt; transparency; draft debt sustainability analysis; transparency policy; Fund staff; Fund arrangement; draft DSA document; restructuring process; Fund-supported program; analysis act; Debt sustainability; Debt restructuring; Sovereign debt restructuring
Cover Policy Papers
Reviews of the Fund's Sovereign ARREARS Policies and Perimeter
International Monetary Fund. Legal Dept.
,
International Monetary Fund. Monetary and Capital Markets Department
, and
International Monetary Fund. Strategy, Policy, & Review Department
This paper undertakes a comprehensive review of the Fund’s sovereign arrears policies. Staff assesses that the Fund’s Lending into Arrears to Private Creditors (LIA) policy (established in 1989 and last reviewed in 2002) remains broadly appropriate, while recommending some improvements given the experience gained over the last 20 years. Staff also sees merit in codifying the existing practice guiding the Fund in preemptive debt restructurings into a Fund policy, together with an amendment focusing on debt transparency. Given limited experience with the application of the LIOA policy (established in 2015), staff does not propose any amendments but only one restatement confirming current practice. Given recent developments in the international creditor community, staff proposes refining the Fund’s arrears policies with respect to multilateral creditors. Finally, recent developments raise questions about the perimeter between official bilateral and private claims, with significant implications for the Fund’s arrears policies.
Keywords:
executive board understanding; draft executive board understanding; SPR coordinator; fund policy; executive board consideration; Arrears; Debt restructuring; Debt sustainability; Multilateral development institutions; Bonds; Global
Cover IMF Working Papers
The Premia on State-Contingent Sovereign Debt Instruments
Ms. Deniz O Igan
,
Mr. Taehoon Kim
, and
Antoine Levy
State-contingent debt instruments such as GDP-linked warrants have garnered attention as a potential tool to help debt-stressed economies smooth repayments over business cycles, yet very few studies of the empirical properties of these instruments exist. This paper develops a general f ramework to estimate the time-varying risk premium of a state-contingent sovereign debt instrument. Our estimation framework applied to GDP-linked warrants issued by Argentina, Greece, and Ukraine reveals three stylized facts: (i) the risk premium in state-contingent instruments is high and persistent; (ii) the risk premium exhibits a pro-cyclical pattern; and (iii) the liquidity premium is higher and more volatile than that for plain-vanilla government bonds issued by the same sovereign. We then present a model in which investors fear ambiguity and that can account for the cyclical properties of the risk premium.
Keywords:
State-contingent debt instruments; GDP-linked warrants; Risk premia; Procyclicality; liquidity premium; GDP-linked warrant; estimation framework; SCDI premium; Sovereign bonds; Securities; Bonds; Liquidity; Debt restructuring; Global
Cover Policy Papers
Issues in Restructuring of Sovereign Domestic Debt
International Monetary Fund
As emerging and developing economies accumulate more domestic sovereign debt, it is likely to play a larger role in the resolution of future sovereign debt crises. This paper analyzes when and how to restructure sovereign domestic debt in unsustainable debt cases while minimizing economic and financial disruptions. Key to determining whether or not domestic debt should be part of a sovereign restructuring is weighing the benefits of the lower debt burden against the fiscal and broader economic costs of achieving that debt relief. The fiscal costs may have to be incurred in the context of restructuring because of the need to maintain financial stability, to ensure the functioning of the central bank, or to replenish pension savings. A sovereign domestic debt restructuring should be designed to anticipate, minimize, and manage its impact on the domestic economy and financial system. Casting the net wide across claims can help boost participation in the restructuring by lowering the relief sought from each creditor group. A strategy that engages creditors constructively, and as transparently as possible, that relies on market-based incentives, and that presents the exchange as part of a consistent macroeconomic plan typically works best.
Keywords:
domestic debt; sovereign debt restructuring; sovereign default; emerging market economies; developing economies; debt reduction strategy; Restructuring event; transparency policy; reduction episode; restructuring events; debt exchange; Debt restructuring; Domestic debt; Sovereign debt restructuring; Global
Cover IMF Research Perspectives
IMF Research Perspectives: Spring/Summer 2021
International Monetary Fund. Research Dept.
IMF Research Perspectives: Spring/Summer 2021
Keywords:
IMF research perspective; government spending multiplier; R&D effort; IMF CSF; central bank financing; COVID-19; Bank credit; Fiscal stance; Global; Sub-Saharan Africa; Europe; Africa
Cover IMF Working Papers
Public Debt Dynamics and Intra-Year Exchange Rate Fluctuations
Mr. Santiago Acosta Ormaechea
The public sector, in carrying out its operations, often incurs foreign currency denominated liabilities and, as such, is exposed to exchange rate fluctuations that could affect the value of public debt to GDP ratios over time. This paper shows that converting foreign currency denominated flows and stocks into local currency using the average and the end-of-period exchange rates, respectively, as envisaged in public finance manuals, gives rise to an identifiable stock-flow adjustment term—due to intra-year exchange rate fluctuations—that affects public debt accumulation. Importantly, the inclusion of this often-ignored stock-flow adjustment term is critical to accurately project public debt levels and any related indicator that could in turn inform about the risk of debt distress. Using a novel dataset covering 82 countries during 2008–19, the paper shows that this stock flow adjustment term is sizable in countries experiencing large exchange rate depreciations, namely above the 99th percentile of the full sample, reaching 1.2 percent of GDP. Interestingly, the measurement of policy-related concepts such as interest rate-growth differentials and debt stabilizing primary balances are also affected by intra-year exchange rate fluctuations, and in non-negligible ways.
Keywords:
Public debt dynamics; intra-year exchange rate fluctuations; interest rate-growth differential; debt stabilizing primary balance.; WP; year exchange rate fluctuation; debt projection; accumulation equation; end-of-period exchange rates; heightened exchange rate volatility; nominal exchange rate depreciation; debt stabilizing primary balance; Exchange rates; Fiscal stance; Currencies; Asset valuation; Global
Cover Staff Discussion Notes
The Role of State-Contingent Debt Instruments in Sovereign Debt Restructurings
Charles Cohen
,
S. M. Ali Abbas
,
Anthony Myrvin
,
Tom Best
,
Mr. Peter Breuer
,
Hui Miao
,
Ms. Alla Myrvoda
, and
Eriko Togo
The COVID-19 crisis may lead to a series of costly and inefficient sovereign debt restructurings. Any such restructurings will likely take place during a period of great economic uncertainty, which may lead to protracted negotiations between creditors and debtors over recovery values, and potentially even relapses into default post-restructuring. State-contingent debt instruments (SCDIs) could play an important role in improving the outcomes of these restructurings.
Keywords:
Sovereign debt restructuring; Pandemic; COVID-19; Global financial crisis; Sovereign debt default; State-contingent debt instruments; GDP-linked debt; natural disasters clauses; debt sustainability; value recovery instruments; natural disaster clauses; reference variable; debt contract; investor preference; GLW payment; VRI payout; sector debt suspension; investor appetite; debt stock; Eurobond investor; trading partner; upside payout; investor participation; Natural disasters; Bonds; Debt restructuring; Securities; Global; Caribbean
Cover Regional Economic Outlook, October 2020, Western Hemisphere
Regional Economic Outlook, October 2020, Western Hemisphere
Pandemic Persistence Clouds the Recovery
International Monetary Fund. Western Hemisphere Dept.

Abstract

The pandemic continues to spread in Latin America and the Caribbean (LAC), but economic activity is picking up. After a deep contraction in April, activity started recovering in May, as lockdowns were gradually eased, consumers and firms adapted to social distancing, some countries introduced sizable policy support, and global activity strengthened.

Keywords:
pandemic; lockdowns; recovery; reopening; public health; REO; IMF staff calculation; nominal GDP; trading partner; world bank LAC estimate; hard currency; potential GDP; banking sector; fiscal policy; COVID-19; Debt restructuring; Securities markets; Caribbean; Global; Central America
Cover Policy Papers
Development Committee: The Managing Director's Written Statement October 2020
International Monetary Fund
The global economy is embarking on a lengthy path to recovery with modest growth expected for 2021, after a severe contraction this year. The global forecast is subject to unusually large risks. Emerging markets and developing economies face an uphill battle. Low-income developing countries are in an especially vulnerable position and risk a persistent and significant deterioration in development prospects. Controlling the pandemic and cushioning the impact on the economy are key. LIDCs should adopt targeted containment measures and strictly prioritize spending and refrain from policies that could create long term damage. Multilateral cooperation and extensive support from the international community are indispensable. The IMF has helped EMDEs through emergency lending and debt service relief. Targeted surveillance and capacity development will tackle new policy challenges and react nimbly to the needs of the membership including fragile and small states.
Keywords:
PP; IMF-World Bank debt sustainability assessment; IMF support; IMF surveillance; lending toolkit; health crisis; capacity development; Policy decision; world economy; policy response; international community; Debt relief; Emerging and frontier financial markets; Debt sustainability; Debt burden; Global; COVID-19
Cover Policy Papers
The International Architecture for Resolving Sovereign Debt Involving Private-Sector Creditors—Recent Developments, Challenges, And Reform Options
International Monetary Fund
There have been significant developments in sovereign debt restructuring involving private-sector creditors since the IMF’s last stocktaking in 2014. While the current contractual approach has been largely effective in resolving sovereign debt cases since 2014, it has gaps that could pose challenges in future restructurings.
Keywords:
PP; exchange offer; sovereign bond; debt transparency; vulture fund debt speculation; restructuring negotiations; debt restructuring; domestic law; debt service; foreign currency; enhanced CACS; debt management; secondary market; Bonds; International bonds; Sovereign debt restructuring; Debt restructuring; Sovereign bonds; Asia and Pacific