Public debt sustainability in the Caribbean

This paper analyses public debt in the most indebted Caribbean countries – i.e. Barbados, Belize, Guyana, Jamaica, Antigua and Barbuda, Dominica, Grenada, and St. Kitts and Nevis – from the standpoint of its sustainability. A level of debt is deemed to be sustainable when the debt-to-GDP ratio rem...

Descripción completa

Guardado en:

Detalles Bibliográficos
Otros Autores:	NU. CEPAL. Sede Subregional para el Caribe
Formato:	Texto
Lenguaje:	English
Publicado:	ECLAC, Subregional Headquarters for the Caribbean 2015
Materias:	DEUDA GESTION DE LA DEUDA DEUDA PUBLICA SERVICIO DE LA DEUDA REEMBOLSO DE LA DEUDA DEBT DEBT MANAGEMENT PUBLIC DEBT DEBT SERVICING DEBT REPAYMENTS
Acceso en línea:	http://hdl.handle.net/11362/38710
Etiquetas:	Agregar Etiqueta Sin Etiquetas, Sea el primero en etiquetar este registro!

id	oai-11362-38710
record_format	dspace
spelling	oai-11362-387102015-07-28T15:16:38Z Public debt sustainability in the Caribbean NU. CEPAL. Sede Subregional para el Caribe DEUDA GESTION DE LA DEUDA DEUDA PUBLICA SERVICIO DE LA DEUDA REEMBOLSO DE LA DEUDA DEBT DEBT MANAGEMENT PUBLIC DEBT DEBT SERVICING DEBT REPAYMENTS This paper analyses public debt in the most indebted Caribbean countries – i.e. Barbados, Belize, Guyana, Jamaica, Antigua and Barbuda, Dominica, Grenada, and St. Kitts and Nevis – from the standpoint of its sustainability. A level of debt is deemed to be sustainable when the debt-to-GDP ratio remains constant or declines. The concept of sustainability is closely linked to that of solvency. A government is solvent if the net present value of its future primary balances (i.e. that excludes interest payments) is equal to or greater than the present value of public debt stock. It can be demonstrated that if the debt-to-GDP ratio is not on an explosive path, that it either stable or decreasing, the solvency condition holds. It is worth noting that the concept of fiscal sustainability addressed in this paper differs from that of optimality of public debt. The analysis that follows is intended to determine whether the service of the current debt levels is consistent with the fiscal stance. Therefore, it does not set out to identify the target debt level based on any optimality criteria. The next section presents the main features of different theoretical approaches to analyse public debt sustainability.1 Section II discusses the situation of public debt in the Caribbean countries showing different indicators; Section III analyses debt sustainability in countries with access to market financing; Section IV does the same in Guyana – a country dependent on concessional financing and, as such, included in the Highly Indebted Poor Countries (HIPC) Initiative – and the countries of the Eastern Caribbean Currency Union (ECCU). Sections V and VI go beyond debt levels as determinants of fiscal sustainability, highlighting the importance of the currency composition of debt and the variability of fiscal revenue. The last section concludes. I. Approaches to analyse public debt sustainability.--II. Situation of public debt in the region.--III. Fiscal sustainability in countries with access to market financing.--IV. Fiscal sustainability in Guyana and ECCU countries.--V. Fiscal vulnerability to changes in exchange rates.--VI. Variability in revenue and fiscal vulnerability.--VII. Conclusions 2015-07-28T15:06:48Z 2015-07-28T15:06:48Z 2008-09-04 Texto Documento Completo http://hdl.handle.net/11362/38710 LC/CAR/L.175 en .pdf application/pdf CARIBE CARIBBEAN REGION ECLAC, Subregional Headquarters for the Caribbean
institution	Cepal
collection	Cepal
language	English
topic	DEUDA GESTION DE LA DEUDA DEUDA PUBLICA SERVICIO DE LA DEUDA REEMBOLSO DE LA DEUDA DEBT DEBT MANAGEMENT PUBLIC DEBT DEBT SERVICING DEBT REPAYMENTS
spellingShingle	DEUDA GESTION DE LA DEUDA DEUDA PUBLICA SERVICIO DE LA DEUDA REEMBOLSO DE LA DEUDA DEBT DEBT MANAGEMENT PUBLIC DEBT DEBT SERVICING DEBT REPAYMENTS Public debt sustainability in the Caribbean
description	This paper analyses public debt in the most indebted Caribbean countries – i.e. Barbados, Belize, Guyana, Jamaica, Antigua and Barbuda, Dominica, Grenada, and St. Kitts and Nevis – from the standpoint of its sustainability. A level of debt is deemed to be sustainable when the debt-to-GDP ratio remains constant or declines. The concept of sustainability is closely linked to that of solvency. A government is solvent if the net present value of its future primary balances (i.e. that excludes interest payments) is equal to or greater than the present value of public debt stock. It can be demonstrated that if the debt-to-GDP ratio is not on an explosive path, that it either stable or decreasing, the solvency condition holds. It is worth noting that the concept of fiscal sustainability addressed in this paper differs from that of optimality of public debt. The analysis that follows is intended to determine whether the service of the current debt levels is consistent with the fiscal stance. Therefore, it does not set out to identify the target debt level based on any optimality criteria. The next section presents the main features of different theoretical approaches to analyse public debt sustainability.1 Section II discusses the situation of public debt in the Caribbean countries showing different indicators; Section III analyses debt sustainability in countries with access to market financing; Section IV does the same in Guyana – a country dependent on concessional financing and, as such, included in the Highly Indebted Poor Countries (HIPC) Initiative – and the countries of the Eastern Caribbean Currency Union (ECCU). Sections V and VI go beyond debt levels as determinants of fiscal sustainability, highlighting the importance of the currency composition of debt and the variability of fiscal revenue. The last section concludes.
author2	NU. CEPAL. Sede Subregional para el Caribe
author_facet	NU. CEPAL. Sede Subregional para el Caribe
format	Texto
title	Public debt sustainability in the Caribbean
title_short	Public debt sustainability in the Caribbean
title_full	Public debt sustainability in the Caribbean
title_fullStr	Public debt sustainability in the Caribbean
title_full_unstemmed	Public debt sustainability in the Caribbean
title_sort	public debt sustainability in the caribbean
publisher	ECLAC, Subregional Headquarters for the Caribbean
publishDate	2015
url	http://hdl.handle.net/11362/38710
_version_	1718442899458228224

Public debt sustainability in the Caribbean

Ejemplares similares