Resolution of Balance of Payments Crises: Emergency Financing and Debt Workouts


  • WIDER Working Paper Series


  • This paper analyses the history and effectiveness of the two major mechanisms of resolution of balance of payments crisis. It argues that IMF lending has met its counter-cyclical objectives through history and has been improving in terms of providing adequate lending facilities as well as focusing conditionality on macro-relevant areas. In contrast, and despite the spread of collective action clauses, much remains to be done in the area of debt restructuring. In this regard, it proposes a multilateral mechanism that offers a sequence of voluntary negotiations, mediation and eventual arbitration with pre-established deadlines, similar to that used in the World Trade Organization’s dispute settlement process.

fecha de publicación

  • 2015

Líneas de investigación

  • Balance of Payments
  • Debt Relief
  • International Agencies


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