The Fund's Lending Framework and Sovereign Debt-Further Considerations

The Fund's Lending Framework and Sovereign Debt-Further Considerations
READ MORE...
Volume/Issue: Volume 2015 Issue 048
Publication date: September 2015
ISBN: 9781498344739
$5.00
Add to Cart by clicking price of the language and format you'd like to purchase
Available Languages and Formats
English
Prices in red indicate formats that are not yet available but are forthcoming.
Topics covered in this book

This title contains information about the following subjects. Click on a subject if you would like to see other titles with the same subjects.

Exports and Imports , Finance , Economics- Macroeconomics , Public Finance , PP , fund's lending framework , lending , further consideration , annex , framework , financing commitment , Market access criterion , debt restructuring , prospects lie , Debt restructuring , Debt sustainability , Spillovers , Global

Summary

In discussing the June 2014 paper, Executive Directors broadly supported staff’s proposal to introduce more flexibility into the Fund’s exceptional access framework to reduce unnecessary costs for the member, its creditors, and the overall system. Directors’ views varied on staff’s proposal to eliminate the systemic exemption introduced in 2010. Many Directors favored removing the exemption but some others preferred to retain it and requested staff to consult further with relevant stakeholders on possible approaches to managing contagion. This paper offers specific proposals on how the Fund’s policy framework could be changed, presents staff’s analysis on the specific issue of managing contagion, and addresses some implementation issues. No Board decision is proposed at this stage. The paper is consistent with the Executive Board’s May 2013 endorsement of a work program focused on strengthening market-based approaches to resolving sovereign debt crises.