The 2008-2009 Financial Crisis and the HIPCs: Another Debt Crisis?

MoFiR Working Paper No. 29

26 Pages Posted: 9 Oct 2009

See all articles by Andrea Filippo Presbitero

Andrea Filippo Presbitero

Università Politecnica delle Marche - Department of Economics; Centre for Macroeconomics & Finance Research (CeMaFiR)

Date Written: September 18, 2009

Abstract

Dealing with one exogenous adverse external shock at a time is generally a difficult challenge for heavily indebted poor countries, because of limited fiscal space, few policy options and scarce debt management capacity. The current financial crisis, because of its unprecedented severity and global scale, forces poor countries to deal with multiple exogenous shocks simultaneously: Mitigating the effects of a reduction in trade, capital inflows and foreign assistance is going to be a very hard task and to require a massive intervention by donors and by the International Financial Institutions, in order to avoid to jeopardize the progresses done so far by debt relief initiatives. The paper tries to spell out the way in which the global economic-financial crisis has affected and still weighs on Low-Income Countries, focusing on overall debt sustainability.

Keywords: Financial crisis, External debt, HIPC, aid

JEL Classification: O11, F34, F30

Suggested Citation

Presbitero, Andrea Filippo, The 2008-2009 Financial Crisis and the HIPCs: Another Debt Crisis? (September 18, 2009). MoFiR Working Paper No. 29. Available at SSRN: https://ssrn.com/abstract=1484383 or http://dx.doi.org/10.2139/ssrn.1484383

Andrea Filippo Presbitero (Contact Author)

Università Politecnica delle Marche - Department of Economics ( email )

Piazzale Martelli, 8
Ancona, AN 60121
Italy
+39 0712207074 (Phone)

HOME PAGE: http://sites.google.com/site/presbitero/

Centre for Macroeconomics & Finance Research (CeMaFiR) ( email )

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