Addressing the Corporate Debt Overhang

Addressing the Corporate Debt Overhang

This White Paper considers the problem of corporate debt overhang and discusses the policy tools to address it. Corporate debt overhang describes the scenario in which a company’s debts are so great that they deter new lenders, affect corporate dec...

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Bibliographic Details
Main Author: World Bank
Format: Report
Language:English
en_US
Published: Washington, DC 2022
Subjects:
CORPORATE DEBT OVERHANG
CORPORATE VULNERABILITIES
NON-PERFORMING LOANS
LEGAL ENVIRONMENT
INSOLVENCY RISK
CDR FRAMEWORKS
CAPITAL MARKETS
Online Access:http://documents.worldbank.org/curated/en/099521308302233830/IDU0c2c197da06bf804624090c20b2e2cfdba7eb
http://hdl.handle.net/10986/37942
id okr-10986-37942
recordtype oai_dc
spelling okr-10986-379422022-09-01T05:10:40Z Addressing the Corporate Debt Overhang World Bank CORPORATE DEBT OVERHANG CORPORATE VULNERABILITIES NON-PERFORMING LOANS LEGAL ENVIRONMENT INSOLVENCY RISK CDR FRAMEWORKS CAPITAL MARKETS This White Paper considers the problem of corporate debt overhang and discusses the policy tools to address it. Corporate debt overhang describes the scenario in which a company’s debts are so great that they deter new lenders, affect corporate decision-making, and stifle new investment. At scale, this phenomenon can compromise economic recovery. A greater level of debt can be tolerated in a booming economy, where returns on investment are high, but in a stagnant or contracting economy, where returns on investment are low, the risks associated with corporate debt overhang tend to be more severe. The White Paper is timely and unique in its breadth and perspective. It presents the different elements of the possible solution sets to the corporate debt overhang problem, drawing on the World Bank Group’s unique field experience in designing and delivering these solutions. The findings in this paper can be used to help policy makers understand the tools available to them and, more importantly, which tools are most likely to deliver the highest marginal benefit for their country. 2022-08-31T16:10:06Z 2022-08-31T16:10:06Z 2022-03 Report http://documents.worldbank.org/curated/en/099521308302233830/IDU0c2c197da06bf804624090c20b2e2cfdba7eb http://hdl.handle.net/10986/37942 English en_US Equitable Growth, Finance and Institutions Insight - Finance; CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo World Bank Washington, DC Economic & Sector Work Economic & Sector Work :: Other Financial Sector Study World
repository_type Digital Repository
institution_category Foreign Institution
institution Digital Repositories
building World Bank Open Knowledge Repository
collection World Bank
language English
en_US
topic CORPORATE DEBT OVERHANG
CORPORATE VULNERABILITIES
NON-PERFORMING LOANS
LEGAL ENVIRONMENT
INSOLVENCY RISK
CDR FRAMEWORKS
CAPITAL MARKETS
spellingShingle CORPORATE DEBT OVERHANG
CORPORATE VULNERABILITIES
NON-PERFORMING LOANS
LEGAL ENVIRONMENT
INSOLVENCY RISK
CDR FRAMEWORKS
CAPITAL MARKETS
World Bank
Addressing the Corporate Debt Overhang
geographic_facet World
relation Equitable Growth, Finance and Institutions Insight - Finance;
description This White Paper considers the problem of corporate debt overhang and discusses the policy tools to address it. Corporate debt overhang describes the scenario in which a company’s debts are so great that they deter new lenders, affect corporate decision-making, and stifle new investment. At scale, this phenomenon can compromise economic recovery. A greater level of debt can be tolerated in a booming economy, where returns on investment are high, but in a stagnant or contracting economy, where returns on investment are low, the risks associated with corporate debt overhang tend to be more severe. The White Paper is timely and unique in its breadth and perspective. It presents the different elements of the possible solution sets to the corporate debt overhang problem, drawing on the World Bank Group’s unique field experience in designing and delivering these solutions. The findings in this paper can be used to help policy makers understand the tools available to them and, more importantly, which tools are most likely to deliver the highest marginal benefit for their country.
format Report
author World Bank
author_facet World Bank
author_sort World Bank
title Addressing the Corporate Debt Overhang
title_short Addressing the Corporate Debt Overhang
title_full Addressing the Corporate Debt Overhang
title_fullStr Addressing the Corporate Debt Overhang
title_full_unstemmed Addressing the Corporate Debt Overhang
title_sort addressing the corporate debt overhang
publisher Washington, DC
publishDate 2022
url http://documents.worldbank.org/curated/en/099521308302233830/IDU0c2c197da06bf804624090c20b2e2cfdba7eb
http://hdl.handle.net/10986/37942
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