Cover IMF Working Papers
Understanding the Use of Long-term Finance in Developing Economies
Author: Mr. Maria Soledad Martinez Peria and Mr. Sergio L. Schmukler
Series:
IMF Working Papers
Volume/Issue:
Volume 2017: Issue 096
Language:
English
Publication Date:
26 Apr 2017
DOI:
https://doi.org/10.5089/9781475595758.001
ISBN:
9781475595758
ISSN:
1018-5941
Pages:
28
Keywords:
WP; finance; institutional investor; capital market; market; maturity; banks; bond markets; firm financing; financial crises; financial intermediaries; institutional investors; issuance maturity; long-term debt; short-term debt; investment finance program; long-term finance; capital market capitalization; economies stock market capitalization; saving needs; finance shift; stock market capitalization; market failure; income economy; investment horizons; Mutual funds; Capital markets; Loans; Pension spending; Insurance companies; Europe; Global; Central America
Legal-disclaimer:
IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.
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This short paper reviews recent literature on the use of long-term finance in developing economies (relative to advanced ones) to identify where long-term financing occurs, and what role different financial intermediaries and markets play in extending this type of financing. Although banks are the most important providers of credit, they do not seem to offer long-term financing. Capital markets have grown since the 1990s and can provide financing at fairly long terms. But few firms use these markets. Only some institutional investors provide funding at long-term maturities. Governments might help to expand long-term financing, although with limited policy tools.
Cover IMF Working Papers
IMF Working Papers
ISSN:
1018-5941
Publisher:
International Monetary Fund