Financial Distress and Access to Capital in Emerging Markets

Jorge Guillén ()

Prague Economic Papers, 2010, vol. 2010, issue 1, 5-20

Abstract: 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 (search for similar items in EconPapers)
JEL-codes: F34 G15 O10 (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (2)

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DOI: 10.18267/j.pep.361

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