Prague Economic Papers 2010, 19(1):5-20 | DOI: 10.18267/j.pep.361
Financial Distress and Access to Capital in Emerging Markets
- University ESAN, Lima; Alonso de Molina 1652, Monterrico, Surco (jguillen@esan.edu.pe).
In this paper I study the main determinants of successful reaccess to international capital markets on a set of emerging market countries after a financial crisis. I focus on three components of the reaccess strategy: commitment to pay, ability to pay, and global liquidity. I employ a panel of 49 countries over a nearly 30-year period and apply a simple probit approach to show that, indeed, a sound external position and a sustainable debt profile, accompanied by a favorable global liquidity environment, are the key considerations for creditors considering whether to resume lending.
Keywords: developing countries, sovereign debt, reaccess, international finance
JEL classification: F34, G15, O10
Published: January 1, 2010 Show citation
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