Previous MondayTuesdayWednesdayThursdayFridayNext

Posted November 5 , 2013

Global Debt

Unsustainable Debt and the Political Economy of Lending: Constraining the IMF's Role in Sovereign Debt Crises

CIGI Paper No. 19 - by Susan Schadler

Waterloo - The timely resolution of severe debt crises has long been one of the most difficult challenges for global financial cooperation. Focussing on the case of Greece, this paper examines how the euro crisis precipitated large International Monetary Fund (IMF) loans that violated the framework developed on the basis of the preceding decade to prevent a costly delay in restructuring. The paper reveals that safeguards meant to prevent the IMF from providing support for crisis countries without a reasonably clear path to debt sustainability failed. In fact, changes made in the context of the euro crisis to the IMF’s framework for lending in severe sovereign debt crises will weaken the IMF’s effectiveness in future crises. The paper concludes with four suggestions for how to re-establish an adequate framework for IMF intervention in severe debt crises in the future.

Download No. 19

Submit press release to - Editor Jon Rohr - Content published on this site represents the opinion of the individual/organization and/or source provider of the Content. is non-partisan, online journal. Privacy Policy. Copyright of Exchange produced editorial is the copyright of Exchange Business Communications Inc. 2013/*.*. Additional editorials, comments and releases are copyright of respective source(s) and/or institutions or organizations.
Submit Press Release
Visitor Centre
Advertising Inquires
Tel: 519.886.0298

Subscribe to Exchange Magazine

Contact Information:

Exchange Business Communication Inc.
Waterloo, Ontario
, Canada

Contact Editors

Print Editor - Paul Knowles
Daily Editor - Jon Rohr

Account Manager Sales
John Hobin