Publication:
Debt Overhang in Emerging Europe?

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dc.contributor.authorBrown, Martin
dc.contributor.authorLane, Philip R.
dc.date.accessioned2012-03-19T18:05:26Z
dc.date.available2012-03-19T18:05:26Z
dc.date.issued2011-08-01
dc.description.abstractThis paper assesses the extent to which debt overhang poses a constraint to economic activity in Emerging Europe, as the region emerges from the recent financial and economic crisis. At the macroeconomic level, it finds that the external imbalance problem for Emerging Europe has been in most cases more one of flows (high current account deficits in the pre-crisis years) rather than large stocks of external debt. A high reliance on equity funding means that net external debt is far lower than net external liabilities. Domestic balance sheets have expanded quite rapidly but sector liabilities remain relatively low compared with advanced economies. With the important exception of Hungary, public debt levels also remain relatively low in Emerging Europe. At the microeconomic level, the potential for debt overhang in the corporate sector is limited to a few countries: Latvia, Lithuania, Estonia, and Slovenia. Due to the low incidence of household debt, hardly any country, except Estonia, seems to face a threat of debt overhang in the household sector. The strong increase in non-performing loans compared with pre-crisis bank profitability suggests that debt overhang in the banking sector is a threat in Ukraine, Latvia, Lithuania, Hungary, Georgia, and Albania. Financial integration of Emerging Europe seems to have contributed to the transmission of the crisis to the region. At the same time, this integration is helping the region in managing the crisis by concerted actions of the major players.en
dc.identifierhttp://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20111011085806
dc.identifier.doi10.1596/1813-9450-5784
dc.identifier.urihttps://hdl.handle.net/10986/3606
dc.languageEnglish
dc.relation.ispartofseriesPolicy Research working paper ; no. WPS 5784
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo/
dc.subjectADVANCED ECONOMIES
dc.subjectASSET POSITION
dc.subjectASSET PRICES
dc.subjectBALANCE SHEET
dc.subjectBALANCE SHEETS
dc.subjectBANK ASSETS
dc.subjectBANK BALANCE SHEETS
dc.subjectBANK BONDS
dc.subjectBANK CREDIT
dc.subjectBANK DEBT
dc.subjectBANK FINANCING
dc.subjectBANK LENDING
dc.subjectBANK LOAN
dc.subjectBANK LOANS
dc.subjectBANK PROFITABILITY
dc.subjectBANKING CRISES
dc.subjectBANKING CRISIS
dc.subjectBANKING SECTOR
dc.subjectBANKING SYSTEM
dc.subjectBIASES
dc.subjectBOND
dc.subjectBOND ISSUANCE
dc.subjectBORROWING
dc.subjectBUSINESS CYCLES
dc.subjectCAPITAL BASE
dc.subjectCENTRAL BANK
dc.subjectCOMMODITY PRICES
dc.subjectCOMMON CURRENCY AREA
dc.subjectCONCEPT OF DEBT
dc.subjectCONSUMER CREDIT
dc.subjectCORPORATE DEBT
dc.subjectCORPORATE FINANCE
dc.subjectCORPORATE INVESTMENT
dc.subjectCREDIT ACCESS
dc.subjectCREDIT AVAILABILITY
dc.subjectCREDIT CARD
dc.subjectCREDIT CARD DEBT
dc.subjectCREDIT CARDS
dc.subjectCREDIT LINE
dc.subjectCREDITOR
dc.subjectCREDITOR RIGHTS
dc.subjectCREDITORS
dc.subjectCURRENCY DEPRECIATION
dc.subjectCURRENCY MISMATCH
dc.subjectCURRENCY SHORTAGES
dc.subjectCURRENT ACCOUNT
dc.subjectCURRENT ACCOUNT DEFICITS
dc.subjectDEBT
dc.subjectDEBT BURDEN
dc.subjectDEBT CRISES
dc.subjectDEBT CRISIS
dc.subjectDEBT DEFAULT
dc.subjectDEBT FINANCING
dc.subjectDEBT FORGIVENESS
dc.subjectDEBT LEVEL
dc.subjectDEBT LEVELS
dc.subjectDEBT LIABILITIES
dc.subjectDEBT LIABILITY
dc.subjectDEBT OVERHANG
dc.subjectDEBT PAYMENTS
dc.subjectDEBT PROBLEM
dc.subjectDEBT RATIO
dc.subjectDEBT RATIOS
dc.subjectDEBT RELIEF
dc.subjectDEBT RESCHEDULING
dc.subjectDEBT RESOLUTION
dc.subjectDEBT RESTRUCTURING
dc.subjectDEBTOR
dc.subjectDEBTORS
dc.subjectDEBTS
dc.subjectDEFAULTS
dc.subjectDEPOSIT
dc.subjectDEPOSIT MONEY BANKS
dc.subjectDEVELOPING COUNTRIES
dc.subjectDEVELOPING COUNTRY
dc.subjectDISTRIBUTION OF CREDIT
dc.subjectDOMESTIC BANKING
dc.subjectDOMESTIC BANKS
dc.subjectDOMESTIC CREDIT
dc.subjectDOMESTIC CURRENCY
dc.subjectDOMESTIC MARKET
dc.subjectDUMMY VARIABLE
dc.subjectEARNINGS
dc.subjectECONOMIC ACTIVITY
dc.subjectECONOMIC CRISIS
dc.subjectECONOMIC GROWTH
dc.subjectECONOMIC POLICIES
dc.subjectECONOMIC POLICY
dc.subjectEDUCATION LEVEL
dc.subjectEMERGING ECONOMIES
dc.subjectEMERGING MARKET
dc.subjectEMERGING MARKET ECONOMIES
dc.subjectEMERGING MARKETS
dc.subjectENTERPRISE CREDIT
dc.subjectENTERPRISE PERFORMANCE
dc.subjectEQUITY CLAIM
dc.subjectEQUITY FINANCING
dc.subjectEQUITY FUNDING
dc.subjectEQUITY RETURN
dc.subjectEQUITY RETURNS
dc.subjectEQUITY SHARE
dc.subjectEXCHANGE RATE
dc.subjectEXCHANGE RATES
dc.subjectEXISTING CREDITORS
dc.subjectEXISTING DEBT
dc.subjectEXPORTER
dc.subjectEXTERNAL DEBT
dc.subjectEXTERNAL DEBTS
dc.subjectEXTERNAL FINANCE
dc.subjectEXTERNAL FUNDING
dc.subjectFACE VALUE
dc.subjectFAMILY BUSINESS
dc.subjectFINANCIAL ASSETS
dc.subjectFINANCIAL ASSISTANCE
dc.subjectFINANCIAL CRISIS
dc.subjectFINANCIAL DEVELOPMENT
dc.subjectFINANCIAL HEALTH
dc.subjectFINANCIAL LIABILITIES
dc.subjectFINANCIAL MARKETS
dc.subjectFINANCIAL PORTFOLIOS
dc.subjectFINANCIAL STABILITY
dc.subjectFINANCIAL STATEMENT
dc.subjectFIRM PERFORMANCE
dc.subjectFOREIGN BANKS
dc.subjectFOREIGN CURRENCY
dc.subjectFOREIGN CURRENCY LOAN
dc.subjectFOREIGN CURRENCY LOANS
dc.subjectFOREIGN DEBT
dc.subjectFOREIGN EQUITY
dc.subjectFOREIGN EXCHANGE
dc.subjectFOREIGN EXCHANGE RESERVES
dc.subjectFOREIGN INVESTORS
dc.subjectGOVERNMENT DEBT
dc.subjectGUARANTOR
dc.subjectHIGH DEBT
dc.subjectHOME IMPROVEMENT
dc.subjectHOME MARKETS
dc.subjectHOUSEHOLD DEBT
dc.subjectHOUSEHOLD INCOME
dc.subjectINCOME LEVEL
dc.subjectINCOME SHOCKS
dc.subjectINDEBTED
dc.subjectINDEBTED HOUSEHOLDS
dc.subjectINDEBTEDNESS
dc.subjectINDIVIDUAL BANKS
dc.subjectINDIVIDUAL CREDITORS
dc.subjectINFORMATION ASYMMETRIES
dc.subjectINSURANCE
dc.subjectINTEREST RATE
dc.subjectINTEREST RATE DIFFERENTIALS
dc.subjectINTEREST RATES
dc.subjectINTERNATIONAL BANK
dc.subjectINTERNATIONAL BANKS
dc.subjectINTERNATIONAL BOND
dc.subjectINTERNATIONAL DEBT
dc.subjectINTERNATIONAL DEBT SECURITIES
dc.subjectINTERNATIONAL FINANCIAL INSTITUTIONS
dc.subjectINVESTMENT ACTIVITY
dc.subjectINVESTMENT BEHAVIOR
dc.subjectINVESTMENT DECISIONS
dc.subjectINVESTMENT LOAN
dc.subjectINVESTMENT OPPORTUNITIES
dc.subjectISSUANCE
dc.subjectLENDERS
dc.subjectLENDING DECISIONS
dc.subjectLEVEL OF DEBT
dc.subjectLEVELS OF CREDIT
dc.subjectLEVERAGE
dc.subjectLIABILITY
dc.subjectLIQUIDITY
dc.subjectLIVING STANDARDS
dc.subjectLOAN
dc.subjectLOAN LOSSES
dc.subjectLOAN PORTFOLIOS
dc.subjectLOAN QUALITY
dc.subjectLOANS FROM BANKS
dc.subjectLOCAL CURRENCY
dc.subjectLOCAL DEBT
dc.subjectLONG-TERM COST
dc.subjectLONG-TERM COSTS
dc.subjectLOWER DEBT
dc.subjectMATURITIES
dc.subjectMONETARY FUND
dc.subjectMORAL HAZARD
dc.subjectMORTGAGE
dc.subjectMORTGAGE CREDIT
dc.subjectMORTGAGE DEBT
dc.subjectMORTGAGE LOANS
dc.subjectMORTGAGES
dc.subjectMULTINATIONAL
dc.subjectNEGATIVE SHOCK
dc.subjectNEGATIVE SHOCKS
dc.subjectNET DEBT
dc.subjectNON-PERFORMING LOAN
dc.subjectNON-PERFORMING LOANS
dc.subjectNPL
dc.subjectOUTPUT LOSSES
dc.subjectOUTSTANDING STOCK
dc.subjectOVERDRAFT
dc.subjectOVERDRAFT FACILITY
dc.subjectPAYOFF
dc.subjectPENALTY
dc.subjectPENSION
dc.subjectPOLICY RESPONSE
dc.subjectPRIVATE CREDIT
dc.subjectPRIVATE SAVING
dc.subjectPRIVATE SECTOR CREDIT
dc.subjectPRIVATE SECTOR LOANS
dc.subjectPROPERTY RIGHTS
dc.subjectPUBLIC DEBT
dc.subjectPUBLIC DEBTS
dc.subjectPUBLIC FUNDS
dc.subjectREAL EXCHANGE RATE
dc.subjectREMITTANCE
dc.subjectREMITTANCES
dc.subjectRENEGOTIATION
dc.subjectREPAYMENT
dc.subjectREPAYMENT DISCIPLINE
dc.subjectREPAYMENTS
dc.subjectRESERVE
dc.subjectSAVINGS
dc.subjectSELF-EMPLOYMENT
dc.subjectSHARE OF ASSETS
dc.subjectSHAREHOLDERS
dc.subjectSOVEREIGN DEBT
dc.subjectSOVEREIGN DEBTS
dc.subjectSTOCKS
dc.subjectTAX
dc.subjectTRADE BALANCE
dc.subjectTRANSPARENCY
dc.subjectURBAN AREA
dc.subjectUSE OF BANK CREDIT
dc.subjectVALUE OF DEBT
dc.subjectVULNERABLE HOUSEHOLDS
dc.subjectWHOLESALE BANK
dc.titleDebt Overhang in Emerging Europe?en
dspace.entity.typePublication
okr.crossref.titleDebt Overhang in Emerging Europe?
okr.date.disclosure2011-08-01
okr.date.doiregistration2025-04-10T11:10:08.362784Z
okr.doctypePublications & Research::Policy Research Working Paper
okr.docurlhttp://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20111011085806
okr.guid185281468256189110
okr.identifier.doi10.1596/1813-9450-5784
okr.identifier.externaldocumentum000158349_20111011085806
okr.identifier.internaldocumentum15267228
okr.identifier.reportWPS5784
okr.language.supporteden
okr.pdfurlhttp://www-wds.worldbank.org/external/default/WDSContentServer/WDSP/IB/2011/10/11/000158349_20111011085806/Rendered/PDF/WPS5784.pdfen
okr.region.administrativeEurope and Central Asia
okr.region.administrativeEurope and Central Asia
okr.unitDevelopment Research Group (DECRG)
okr.volume1 of 1
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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