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dc.titleMultilateral Safety Nets for Financial Crises
dc.contributor.authorFernández-Arias, Eduardo
dc.contributor.orgunitDepartment of Research and Chief Economist
dc.coverageThe Caribbean
dc.coverageCentral America
dc.coverageSouth America
dc.date.available2011-02-04T00:00:00
dc.date.issue2010-06-04T00:00:00
dc.description.abstractThere is an increasing need for a system of international lending of last resort (ILLR) to provide a safety net in the event of financial crises in vulnerable countries as financial globalization deepens and spreads. Multilateral progress to address liquidity and solvency crises has been patchy and inconsistent, with no clear distinction between the two; in particular, there is still no framework to address sovereign debt restructuring. This paper proposes an integrated system of specialized ILLR facilities to address problems of liquidity, adjustment, and debt restructuring in a focused but robust way as crises evolve and morph, structured in tiers to cater to countries capacity to prequalify for automatic support. It further proposes feasible legal reform to subject creditors to standstills and seniority dilution as in domestic bankruptcy in order to empower ILLR to facilitate orderly workouts in debt restructuring. Multilateral development banks would play important supporting roles.
dc.identifier.doihttp://dx.doi.org/10.18235/0010827
dc.identifier.urlhttps://publications.iadb.org/publications/english/document/Multilateral-Safety-Nets-for-Financial-Crises.pdf
dc.language.isoen
dc.mediumAdobe PDF
dc.publisherInter-American Development Bank
dc.subjectFinancial Crisis and Structural Adjustement
dc.subjectFinancial Sector
dc.subject.jelcodeF34 - International Lending and Debt Problems
dc.subject.jelcodeF53 - International Agreements and Observance • International Organizations
dc.subject.jelcodeF55 - International Institutional Arrangements
dc.subject.keywordsIDB-WP-192
idb.identifier.pubnumberWorking Papers
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