A (New) Country Insurance Facility

WPIEA2005023 Image
Price:  $15.00

Author/Editor: Tito Cordella, Eduardo Levy Yeyati
Release Date: © January, 2005
ISBN : 978-1-45186-042-9
Stock #: WPIEA2005023
English
Stock Status: Available

Languages and formats available

EnglishFrenchSpanishArabicRussianChinesePortuguese
PaperbackYes
PDFYes

Description

To cope with the self-fulfilling liquidity runs that triggered many recent financial crises, we propose the creation of a country insurance facility. The facility, which we envisage as complementary to the existing multilateral lending facilities, would provide eligible countries with automatic access to a credit line at a predetermined interest rate. Eligibility criteria should be easily verifiable, focus on debt sustainability, and take into account the currency and maturity composition of the debt. Other critical design issues considered here include the size of the facility, its duration and charges, and the exit costs for a country that loses eligibility.

Taxonomy

Financial crisis , Financial institutions and markets , Insurance , International capital markets , International financial system




More publications in this series: Working Papers


More publications by: Tito Cordella ; Eduardo Levy Yeyati