Cash Constraints and Credit Corsets : The Chimera of Interenterprise Credit
The buildup of interenterprise credit in many Central and Eastern European countries is often seen as a problem that requires a government bailout. The authors show that arrears rise only temporarily, as the hard budget constraint bites, and then p...
| Main Authors: | , |
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| Format: | Viewpoint |
| Language: | English |
| Published: |
World Bank, Washington, DC
2012
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| Subjects: | |
| Online Access: | http://documents.worldbank.org/curated/en/1995/03/441460/cash-constraints-credit-corsets-chimera-interenterprise-credit http://hdl.handle.net/10986/11676 |
| Summary: | The buildup of interenterprise credit in
many Central and Eastern European countries is often seen as
a problem that requires a government bailout. The authors
show that arrears rise only temporarily, as the hard budget
constraint bites, and then plateau. Therefore, they argue
that while governments should monitor the stock of debt to
see how quickly enterprises are adjusting, they
shouldn't be panicked into bailing them out. |
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