Comparison of External Exposure of Central and Eastern-European States as a Factor Threatening Financial Security of Their Economies

Redo, Magdalena

doi:10.12775/hip.2018.017

Cited by 8 publications

(6 citation statements)

References 4 publications

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“…The categories "debt security" (or "debt safety") and "financial security" are often applied to households and businesses (Hrybinenko, Bulatova, Zakharova, 2020). If the concept of debt security is considered in relation to the state, often the assessment of its level is actually equated to a study of the public debt (both internal and external) based on the analysis of a number of absolute and relative indicators (Makarchuk, Perchuk, Yaremenko, 2017;Marena, Peronko, 2019;Redo, 2018). Indicators of debt security are specific statistical indices of the development of the debt situation in the country, which comprehensively characterize the phenomena and trends that occur in the debt sector.…”

Section: Literature Reviewmentioning

confidence: 99%

Debt Security of CEE Countries: Actual Approaches and Methods of Evaluation

2021

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The study is aimed at analyzing methods of country’s debt security evaluation, developing methodic approach towards estimating the level of debt security based on the calculation of the integral index, and assessing the level of debt security of CEE countries on the basis of the proposed approach. A method of calculating the integral debt security index of the country is developed, taking into account generally accepted thresholds of indebtedness and solvency indicators and the trend of countries’ increasing dependence on external borrowing. The proposed approach is practically tested in assessing the level of debt security of CEE countries. It is determined that the group of CEE countries is differentiated by the state of indebtedness and solvency. The highest level of debt security is demonstrated by Bulgaria, the Czech Republic and Estonia, the worst situation with the debt security is formed in Slovakia and Slovenia. Based on the analysis of the dynamics of integral debt security indices for 2007–2019, the grouping of CEE countries by the level and zones of debt security, the trends of deterioration of the region’s debt security in 2010–2015 and its improvement in 2016–2019 has been found out. The proposed approach is universal one; it can be used to calculate debt security indices and to provide comparative studies of the debt sector of any country or region. It can also help to identify weaknesses in country’s debt security that is critically important for reasoning the public policy measures to ensure a proper level of debt security.

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Section: Literature Reviewmentioning

confidence: 99%

Debt Security of CEE Countries: Actual Approaches and Methods of Evaluation

2021

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“…Redo, providing a comparison of external exposure of Central and Eastern European states as a factor threatening the financial security of their economies, remarks that the economies under consideration have a substantial external debt level and are characterized by a high level of foreign liabilities. The strong links of these countries to the international economic and financial systems result in their dependence on foreign capital and make them vulnerable to external shocks (Redo, 2018).…”

Section: Review Of Recent Studiesmentioning

confidence: 99%

Challenges and Threats to the Debt Security of Central and Eastern European Countries

Chentukov¹,

Marena²,

Zakharova³

2021

10.14746/ssp

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The study aims to identify the debt security weaknesses in the CEE countries and determine challenges and threats to the debt security of national economies and the CEE region. To achieve this goal, general and specific research methods have been used, including historical and logical methods, analysis and synthesis, structural and functional analysis, generalization and abstraction, a systematic approach, classification, and statistical methods. It is found out that the situation with debt security in the CEE region is quite controversial. The average external debt indicators of the CEE countries are in the unsafe zone, while the average solvency is at a relatively safe level. The analysis of external indebtedness and solvency indicators shows that the CEE group is highly heterogeneous regarding the level of countries’ debt security. Despite some improvement in the debt security of CEE economies during 2017–2019, the prospects for the development of the debt situation are rather vague. It is due to the growing impact of external challenges and threats to the debt security of the region, including the deterioration of the global economic environment and global recession, increase in credit risks and contraction in the international lending, global economic and political imbalances, and policy divergence, growing government spending on solving problems caused by the COVID-19 and corresponding pressure on public budgets, the general growth of global debt. Given the high heterogeneity of CEE countries in terms of current debt security, the manifestation of global challenges in each national economy can be rather diverse.

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“…According to Redo (2018), the countries of Central and Eastern Europe are rather integrated into the international economic and financial systems, which entails their dependence on foreign capital and the situation on global markets, makes them vulnerable to external shocks and threatens the financial security of their economies.…”

Section: Literature Reviewmentioning

confidence: 99%

The impact of global financial transformations on the economic security of Central and Eastern European countries

Bulatova

Marena

Chentukov

et al. 2020

Public and Municipal Finance

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Global financial transformations provoke shifts in financial systems that can threaten countries’ economic security. Further integration of the CEE states to the global economy will be accompanied by the increasing dependence of their financial markets and economic security on global financial challenges. The study aims to identify the relationship between global and regional financial trends that shape CEE countries’ economic security and reveal the shifts in the CEE region’s economic security under the influence of global financial transformation. The global financial transformations are the object of the study. Comparative analysis of the dynamics of financial transformations in the world and the CEE countries is made using structural analysis and methods of economic and mathematical modeling of trends. Given the heterogeneity of the CEE states’ financial development, global financial transformations have different manifestations in these countries. The relationship between global and regional indicators of financial transformation proved to be ambiguous. The regional dynamics of stock market capitalization, debt securities, and external debt fit corresponding world indicators’ dynamics. The indicators of global and regional official reserves and bank assets are moving in different directions. The region’s economic security challenges are great volatility of stock market capitalization, growth of external debt burden, and uneven distribution of official reserves. The obtained results should be considered when identifying financial threats affecting the CEE countries’ security and developing relevant policies for shaping the region’s efficient financial system.

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Comparison of External Exposure of Central and Eastern-European States as a Factor Threatening Financial Security of Their Economies

Cited by 8 publications

References 4 publications

Debt Security of CEE Countries: Actual Approaches and Methods of Evaluation

Debt Security of CEE Countries: Actual Approaches and Methods of Evaluation

Challenges and Threats to the Debt Security of Central and Eastern European Countries

The impact of global financial transformations on the economic security of Central and Eastern European countries

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