A Constrained Choice? Impact of Concessionality Requirements on Borrowing Behavior

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 concession...

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Bibliographic Details
Main Author: Ahokpossi, Calixte
Other Authors: Allain, Laurence, Bua, Giovanna
Format: eBook
Language:English
Published: Washington, D.C. International Monetary Fund 2014
Series:IMF Working Papers
Subjects:
Online Access:
Collection: International Monetary Fund - Collection details see MPG.ReNa
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245 0 0 |a A Constrained Choice? Impact of Concessionality Requirements on Borrowing Behavior  |c Calixte Ahokpossi, Laurence Allain, Giovanna Bua 
260 |a Washington, D.C.  |b International Monetary Fund  |c 2014 
300 |a 41 pages 
653 |a International Monetary Arrangements and Institutions 
653 |a Investment 
653 |a International Organizations 
653 |a Finance 
653 |a Debt limits 
653 |a Infrastructure 
653 |a Debt Management 
653 |a Debt 
653 |a Exports and Imports 
653 |a Intangible Capital 
653 |a International Lending and Debt Problems 
653 |a International economics 
653 |a Debts, External 
653 |a Sovereign Debt 
653 |a Economic Development, Innovation, Technological Change, and Growth 
653 |a Saving and investment 
653 |a Foreign Aid 
653 |a Macroeconomics 
653 |a Concessional external borrowing 
653 |a Capacity 
653 |a Financial Risk Management 
653 |a Capital 
653 |a International Agreements and Observance 
700 1 |a Allain, Laurence 
700 1 |a Bua, Giovanna 
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520 |a 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