Financial Stability Review
International Finance Articles
2005
2005 2004 2003 2002 2001 2000 1999 1998 1997 1996
Capital
Flows to Emerging Markets: Recent Trends and Potential Financial
Stability Implications
(138k)
(Issue 19, December 2005)
There has been a marked growth in capital flows to emerging market economies (EMEs) in recent years, intermediated increasingly through financial markets. This article describes the main patterns of these inflows and the potential implications for the way that adverse shocks in EMEs could be transmitted through, and to, the global financial system. Finally, it makes use of a relatively new data source to measure the extent of common creditor interlinkages between EMEs and assesses the current risk of market contagion.
Resolving Sovereign Debt Crises: The Market-Based Approach and the Role of the IMF
(202k)
(Issue 18, June 2005)
Resolving sovereign debt crises occasionally requires renegotiation of debts to private creditors, typically in conjunction with an IMF programme. Market mechanisms to facilitate debt renegotiations have improved in recent years but more needs to be done to make the process efficient and equitable. IMF policies specifying the circumstances in which the Fund can lend set the context for debt restructuring negotiations; these policies need to be improved before the market-based approach to crisis resolution can work effectively.
Sovereign Bond Contracts: A Workshop at the Bank of England
(185k)
(Issue 18, June 2005)
Improving the design of sovereign bond contracts is one way in which the arrangements for resolving sovereign debt crises can be strengthened. In January 2005, the Bank of England hosted a workshop that allowed market participants to review recent developments in contract design and consider the case for further innovation. This short article summarises the main points of discussion.
Key Resources
|
Memorandum of Understanding between HM Treasury,
the Bank of England and the Financial Services Authority
Download PDF (50k) |
