BANK LENDING TO LDCs: LESSONS FROM THE 1970s

We use a recently-compiled database with monthly observations, to analyse the determinants of syndicated loans to Latin American (L.A.) and East Asian countries, for the period 1972-1982. Our results indicate that the loans were to a large extent supply-driven, and thus provide econometric evidence...

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Bibliographic Details
Published in:International economic journal 2003, Vol.17 (2), p.19-36
Main Authors: ANTZOULATOS, ANGELOS A., SETH, NAVEEN
Format: Article
Language:English
Subjects:
Banking
Banks
Capital
Debt
Developing countries
East Asia
Econometrics
Economics
Financial crisis
Latin America
Loans
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Summary:We use a recently-compiled database with monthly observations, to analyse the determinants of syndicated loans to Latin American (L.A.) and East Asian countries, for the period 1972-1982. Our results indicate that the loans were to a large extent supply-driven, and thus provide econometric evidence that "overlending" was a significant determinant of them along with economic fundamentals in the borrowing countries. They also suggest that E. Asia's recent currency and banking crises will not likely develop into another "debt crisis", precipitated by a prolonged withdrawal of private capital from the region. [F34, G15, N25, N26]
ISSN:1016-8737
1743-517X
DOI:10.1080/10168730300080010