Debt Maturity and the Use of Short-Term Debt
Evidence form Sovereigns and Firms
Business & Finance, Economics, International Economics, Nonfiction, Social & Cultural Studies, Political Science, Politics, Economic Policy
| Author: | Sophia Chen, Paola Ganum, Lucy Qian Liu, Leonardo Martinez, Maria Soledad Martinez Peria | ISBN: | 9781484397633 |
| Publisher: | INTERNATIONAL MONETARY FUND | Publication: | February 5, 2019 |
| Imprint: | Language: | English |
| Author: | Sophia Chen, Paola Ganum, Lucy Qian Liu, Leonardo Martinez, Maria Soledad Martinez Peria |
| ISBN: | 9781484397633 |
| Publisher: | INTERNATIONAL MONETARY FUND |
| Publication: | February 5, 2019 |
| Imprint: | |
| Language: | English |
The maturity structure of debt can have financial and real consequences. Short-term debt exposes borrowers to rollover risk (where the terms of financing are renegotiated to the detriment of the borrower) and is associated with financial crises. Moreover, debt maturity can have an impact on the ability of firms to undertake long-term productive investments and, as a result, affect economic activity. The aim of this paper is to examine the evolution and determinants of debt maturity and to characterize differences across countries.
The maturity structure of debt can have financial and real consequences. Short-term debt exposes borrowers to rollover risk (where the terms of financing are renegotiated to the detriment of the borrower) and is associated with financial crises. Moreover, debt maturity can have an impact on the ability of firms to undertake long-term productive investments and, as a result, affect economic activity. The aim of this paper is to examine the evolution and determinants of debt maturity and to characterize differences across countries.
