The problem of bad loans and enterprise indebtedness in Bulgaria

Dobrinsky, Rumen

doi:10.1007/bf00993828

Cited by 8 publications

(4 citation statements)

References 5 publications

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“…as a percentage of total EBRD (1998EBRD ( , 1999 outstanding loans) Gao and Schaffer (1998) c. arrears of repayment of loans Cull and Xu (2000) (e.g. as a percentage of total outstanding loans Dobrinsky (1994) or bank credit and bank arrear correlation) Frydman, Gray, Hessel, Rapaczynski (2000) Gao and Schaffer (1998) Perotti and Carare (1997) d. unusual debt/equity ratio or debt/asset ratio Budina, Garretsen, and de Jong (2000) Majumdar (1998) Gao and Schaffer (1998) e. unusual cash-flow/debt ratio Pohl, Anderson, Claessens, Djankov (1997) f. survey: subjective assessment Tóth (1998) Gao and Schaffer (1998) (e.g. loss-makers as a percentage of all firms) Li and Liang (1998) 7.…”

Section: Means Of Softeningmentioning

confidence: 99%

Understanding the Soft Budget Constraint

Kornai¹,

Maskin²,

Roland³

2003

Journal of Economic Literature

356

185

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We propose a clarification of the notion of a soft budget constraint, a concept widely used in the analysis of socialist, transitional, and market economies. Our interpretation is broad enough to embrace most existing approaches to soft budget constraint phenomena and provides a classification of their causes and consequences. In light of this interpretation, we then review the theoretical literature on the subject and compare it with those on other dynamic commitment problems in economics.

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Section: Means Of Softeningmentioning

confidence: 99%

Understanding the Soft Budget Constraint

Kornai¹,

Maskin²,

Roland³

2003

Journal of Economic Literature

356

185

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“…the snowballing of bad loans, the low payment discipline, the political instability, efc. (Dobrinsky, 1994b). The build-up of such pressures requires macroeconomic adjustment and, as noted earlier, under the floating regime the exchange rate bears the initial weight of such an adjustment.…”

Section: Is Stabilization Sustainable Under a Floating Exchange Rate?mentioning

confidence: 96%

Monetary policy, macroeconomic adjustment and currency speculation under floating exchange rates: the case of Bulgaria

Dobrinsky

1996

Economics of Transition

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This paper deals with the Bulgarian experience with exchange rate policy and the related macroeconomic adjustment in the transition period. It is argued that in the context of the Bulgarian macroeconomic environment, the exchange rate regime and the exchange rate policy (or the lack of such) did play a crucial role in determining the patterns of macroeconomic adjustment in this period. A simple general equilibrium model is suggested that provides some insights into the stylized performance of an economy under certain assumptions, similar to those characterizing the transitional state of the Bulgarian economy. Finally, some aspects of Bulgarian macroeconomic performance in recent years are analysed on the basis of the available empirical information and using the framework of the theoretical model. The paper concludes with the policy lessons of this experience. Copyright 1996 The European Bank for Reconstruction and Development.

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“…In both countries there were several rounds of bail-out in the period 1992-1994 (for details see Schaffer, 1995 andDobrinsky, 1994a). The Czech government also implemented a number of financial rescue operations such as cleaning of old debts of to-be privatized SOEs, recapitalization of commercial banks, capital strengthening of commercial banks (Capek, 1994;Dobrinsky et af., 1994).…”

Section: Microeconomic Transformation and Hardening Of Budget Constramentioning

confidence: 98%

“…The programmes for financial restructuring in Hungary and Bulgaria were similar and in essence constituted a swap of bad enterprise debt in the balance sheets of commercial banks for government securities coupled with the cancellation or rescheduling of debt in the company books. In both countries there were several rounds of bail-out in the period 1992-1994 (for details see Schaffer, 1995 andDobrinsky, 1994a). The Czech government also implemented a number of financial rescue operations such as cleaning of old debts of to-be privatized SOEs, recapitalization of commercial banks, capital strengthening of commercial banks (Capek, 1994;Dobrinsky et af., 1994).…”

Section: Microeconomic Transformation and Hardening Of Budget Constramentioning

confidence: 99%

Enterprise restructuring and adjustment in the transition to market economy: lessons from the experience of Central and Eastern Europe

Dobrinsky

1996

Economics of Transition

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Some aspects of the process of enterprise restructuring and adjustment in the Central and Eastern European countries are analysed on the basis of evideance from recent empirical research on microeconomic performance in these transition economies. The paper outlines a stylized picture of some types of enterprise behaviour which occur in this period and highlights a number of issues related to the process of enterprise restructuring and adjustment such as the problem of micro budget constraints, the motivation for enterprise restructuring, the issues of corporate governance. Some of the current impediments to enterprise restructuring as well as some of the determinants of enterprise performance in the transition periód are also featured in the paper. Copyright 1996 The European Bank for Reconstruction and Development.

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The problem of bad loans and enterprise indebtedness in Bulgaria

Cited by 8 publications

References 5 publications

Understanding the Soft Budget Constraint

Understanding the Soft Budget Constraint

Monetary policy, macroeconomic adjustment and currency speculation under floating exchange rates: the case of Bulgaria

Enterprise restructuring and adjustment in the transition to market economy: lessons from the experience of Central and Eastern Europe

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