Debt
Debt crises lead to sharp and protracted recessions: IMF paper
Fund study shows debt crises reduce output growth by about 10 percentage points and last an average of eight years
IMF paper on how to negotiate a debt restructuring
Fund study shows full creditor participation requires haircuts and probability of successfully holding out for entire repayment is not too high
NY Fed paper highlights risky debt management strategies
New York Federal Reserve study says high levels and maturities of debt risk increasing macroeconomic instability
Debt tolerance levels in Central America: IMF paper
Fund study shows level of debt reduction needed to achieve investment-grade credit-rating status
Greece may not opt for debt swap
Greek authorities say they will not agree to private-sector involvement unless 90% of eligible government bonds are included in transaction
Carney discusses handling of global debt crises
Testifying before the House of Commons Standing Committee on Finance, Carney discusses the handling of debt crises in both the US and the eurozone
Fitch issues stern warning to the US
Affirms AAA rating but says failure to agree on deficit-reduction measures would ‘likely result in negative rating action’
CEPR paper finds increased investment in private firms
Centre for Economic Policy Research study says greater privatisation of firms and more independent regulators lead to greater investment
Obama acknowledges AAA credit rating at risk
Obama says result of downgrade would be “like a tax on everyone” with higher interest rates; remains hopeful that there are “plenty of ways out of this mess”
Banks have most to lose from a US default: Standard & Poor's report
Standard and Poor’s says financial institutions reliant on short-term funding from the US Treasury would be hit hardest if the US were to default on its debt
Bernanke warns Congress on fiscal deficit
Fed chairman warns limiting debt ceiling self defeating, says US must choose between “careful and deliberative process” of financial policy change or “much more painful” crisis response
Uganada’s Tumusiime-Mutebile on reforming debt markets
Bank of Uganda governor Emmanuel Tumusiime-Mutebile calls for greater participation of brokers in debt markets
Banks caught in ‘maelstrom of interlinked pressures’: IMF
IMF’s Global Financial Stability Report slams progress made by banking system reforms; calls for higher quality and quantity capital in Europe
Riksbank report examines links between housing and financial stability
Report notes that housing slumps seldom result in banking crises outside the US; highlights data deficiencies
Risk Europe: no-go on CoCos, says panel
Traditional investors won't be won over by debt that converts into equity, says conference panel - and one CoCo issuer raises threat of feedback effects
IMF paper on debt dilution
Fund study says commitment to reduce debt levels can eliminate risk of debt dilution
IMF: Historical debt stats will help plot growth strategy
IMF says its historical public debt database will help policymakers see the relationship between debt and growth; data goes as far back as 1791
Sudan bans some imports as forex shortage looms
Bank of Sudan bans imports of luxury items, goods with local substitutes, to conserve foreign currency; currency wobbles on secession, oil fears
NY Fed: US consumers ease debt burdens
New York Federal Reserve study measures scope of consumer indebtedness and impact of credit issuance
Debt management poses greater refinancing risks: Netherlands Bank
The Netherlands Bank study says greater reliance on short-term debt requires better coordination between debt managers and central banks
Bank of Canada – Financial System Review (December 2010)
Canadian central bank says households’ debt levels pose risk
IMF: unequal income distribution raises leverage
Fund study shows high income households’ greater bargaining power induces high leverage and financial crises
IMF finds persistent debt overhang in Baltic countries
Fund study finds level debt overhang most pronounced in Estonia and Latvia
Monetary policy cannot correct over-leveraging: Bank’s Miles
Higher interest rates will not prevent build-up of debt, which amplified effects of recent crisis, says Bank of England rate-setter David Miles