A Constrained Choice? Impact of Concessionality Requirements on Borrowing Behavior

Calixte Ahokpossi, Laurence Allain and Giovanna Bua

No 2014/176, IMF Working Papers from International Monetary Fund

Abstract: This paper uses the propensity matching score approach to assess the impact of the IMF’s debt limits policy (DLP) on borrowing behavior in countries eligible to borrow from its concessional lending window. The paper finds that countries under the DLP borrow significantly higher amounts of concessional resources. However, there is no evidence that the DLP significantly impacts the level of non-concessional borrowing nor the terms of such borrowing. This result is confirmed by the heterogeneity analysis, suggesting that the level of development, rather than concessionality requirements, is the key driver of non-concessional borrowing.

Keywords: WP; IMF program; program; debt limits policy (search for similar items in EconPapers)
Pages: 41
Date: 2014-09-24
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Citations: View citations in EconPapers (2)

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