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dc.contributor.authorCorsetti, G.
dc.contributor.authorErce, A.
dc.contributor.authorUy, T.
dc.date.accessioned2019-04-26T12:03:32Z
dc.date.available2019-04-26T12:03:32Z
dc.date.issued2017-08-17
dc.identifier.otherCWPE1730
dc.identifier.urihttps://www.repository.cam.ac.uk/handle/1810/292013
dc.description.abstractIn response to the euro area crisis, European policymakers took a gradual, incremental approach to official lending, at first relying on the approach followed by the International Monetary Fund, then developing their own crisis resolution framework. We review this development, marked by a substantial divergence in the terms of official loans offered to the crisis countries by the IMF and the euro area official lenders. Based on a unique dataset, we use event analysis to assess the impact of changing maturity and spreads of official loans on bond yields, liquidity and market access. In light of the euro area experience, we discuss arguments for rebalancing Debt Sustainability Analysis and programme design towards cash-flow management. While the official assistance granted to crisis countries in the euro area may not be replicable elsewhere, key lessons from it that could foster a reconsideration of the modalities by which official lending institutions handle crises.
dc.publisherFaculty of Economics
dc.relation.ispartofseriesCambridge Working Papers in Economics
dc.rightsAll Rights Reserveden
dc.rights.urihttps://www.rioxx.net/licenses/all-rights-reserved/en
dc.subjectCrisis management
dc.subjectdebt sustainability
dc.subjectloans maturity
dc.subjectmarket access
dc.subjectprivate sector involvement
dc.subjectseniority
dc.subjectyield curve.
dc.titleOfficial Sector Lending Strategies During the Euro Area Crisis
dc.typeWorking Paper
dc.identifier.doi10.17863/CAM.39166


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