Financial distress and access to capital in emerging markets

• Autor: Guillén, Jorge
• Formato: artículo
• Fecha de Publicación: 2010
• Institución: Universidad ESAN
• Repositorio: ESAN-Institucional
• Lenguaje: inglés
• OAI Identifier: oai:repositorio.esan.edu.pe:20.500.12640/2437
• Enlace del recurso: https://hdl.handle.net/20.500.12640/2437; https://doi.org/10.18267/j.pep.361
• Nivel de acceso: acceso abierto
• Materia: Sovereign debt; Reaccess; International finance; Developing countries; Deuda soberana; Reacceso; Finanzas internacionales; Países en desarrollo; https://purl.org/pe-repo/ocde/ford#5.02.04

In this paper I study the main determinants of successful reaccess to international capital markets on a set of emerging market countries after a financial crisis. I focus on three components of the reaccess strategy: commitment to pay, ability to pay, and global liquidity. I employ a panel of 49 countries over a nearly 30-year period and apply a simple probit approach to show that, indeed, a sound external position and a sustainable debt profile, accompanied by a favorable global liquidity environment, are the key considerations for creditors considering whether to resume lending.