Do credit markets have faith in IMF imprimatur?

Yener Altunbaş, Shanti P. Chakravarty, Alper Kara

Research output: Contribution to journalArticlepeer-review

Abstract

This paper examines the effect of the IMF imprimatur on the cost of borrowing in the international capital markets by investigating over 2600 loan contracts issued to public and private sector borrowers located in countries experiencing balance of payments problems between 1993 and 2001. The data are grouped into two samples. Both the samples comprise countries characterised by similar balance of payments problems, but only one of them comprise countries that have availed of IMF assistance. The IMF assisted countries paid more for short term loans and had obtained fewer long term loans compared to their non-IMF peers for the financing of similar purpose projects.
Original languageEnglish
Pages (from-to)221-239
Number of pages19
JournalJournal of World Economic Review
Volume1
Issue number2
Publication statusPublished - 1 Jan 2006
Externally publishedYes

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