Financial Security in the Baltic States: Comparison with Selected EU Countries
DOI:
https://doi.org/10.1515/eb-2016-0026Keywords:
Financial security, government debt, sovereign ratingAbstract
The present paper applies recently developed consolidated indicator of the state financial security to the situation in Baltic States and some EU countries. The indicator summarises a number of economic and financial parameters relevant to the financial independence of the country. The resulting indicator demonstrates a reasonable correlation with sovereign Fitch rating both for Baltic States and the “old” EU countries, but Fitch rating gives more optimistic evaluation for old EU countries.References
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Standard & Poor’s. (2012). Sovereign ratings . Retrieved June 2, 2012, from www.standardandpoors.com/ratings/sovereigns/ratings
De Broeck, M. (1997). The financial structure of government debt in OECD countries: An examination of the time-consistency issue. Journal of Monetary Economics, 39 (2), 279–301. http://dx.doi.org/10.1016/S0304-3932(97)00013-5
De Paoli, B. S., Hoggarth, G. & Saporta, V. (2006). Costs of sovereign defaults. Bank of England. Financial Stability. No. 1, July.
Dooley, M. P. (2000). Debt management and crisis in developing countries. Journal of Development Economics , 63 (1), 45–58. http://dx.doi.org/10.1016/S0304-3878(00)00099-7
Drudi, F. & Giordano, R. (2000). Default risk and optimal debt management. Journal of Banking and Finance , 24 (6), 861–891. http://dx.doi.org/10.1016/S0378-4266(99)00110-7
European Central Bank. (2012). Analysing government debt sustainability in the euro area. Monthly Bulletin, April 2012, 55–70, Retrieved from https://www.ecb.europa.eu/pub/pdf/mobu/mb201204en.pdf
European Security and Marked Authority. (2013). Press release, ESMA/2013/1790. Retrieved September 5, 2015, from http://www.esma.europa.eu/
Eurostat. (2013). Database Government Deficit and Debt . Retrieved September 2, 2013, from http://epp.eurostat.ec.europa.eu/
Fitch Rating. (2012). Rating methodology . Retrieved August 13, 2012, from http://www.fitchratings.com/gws/en/sector/overview/sovereigns
Fuchs, A. & Gehring, K. (2013). The Home Bias in Sovereign Ratings, Discussion Paper Series No. 552 , University of Heidelberg, 54. Retrieved September 5, 2015, from http://www.uni-heidelberg.de
Furceri, D. & Zdzienicka, A. (2012). How costly are debt crises? Journal of International Money and Finance, 31 (4), 726–742. http://dx.doi.org/10.1016/j.jimonfin.2012.01.012
Japan Credit Rating Agency. (2012). Rating methodology . Retrieved August 18, 2012, from http://www.jcr.co.jp/english/
Hughes, H. (1979). Debt and development: The role of foreign capital in economic growth. World Development , 7 (2), 95–112. http://dx.doi.org/10.1016/0305-750X(79)90026-3
Kendall, M. G. & Babington, S. B. (1939). The Problem of m Rankings. The Annals of Mathematical Statistics, 10 (3), 275–287. http://dx.doi.org/10.1214/aoms/1177732186
Ketners, K., Krastiņš, A. & Zvidriņa, S. (2007). Latvian Financial Policy Evaluation Principles and State Security Criteria. Economics and Business. Economy: Theory and Practice, 14, 34–42. (In Latvian: Ketners, K., Krastiņš, A., Zvidriņa, S. (2007). Latvijas finanšu politikas novērtēšanas principi un valsts drošības kritēriji, Ekonomika un uzņēmējdarbība. Tautsaimniecība – teorija un prakse , 14 , 34–42).
Moody’s. (2012). Sovereign Bond Ratings, Rating Methodology . Retrieved July 14, 2012, from www.moodys.com/researchandratings/rating-methodologies
Oakley, D. & Hope, K. (2009). Financial Times , January 14, 2009. Retrieved from www.ft.com.ft
Semjonova, N. (2014). Evaluation of the Latvian Financial Security: Aspects of Government Debt Policy. Safety of Technogenic Environment , 6 , 36–42. http://dx.doi.org/10.7250/ste.2014.013
Standard & Poor’s. (2012). Sovereign ratings . Retrieved June 2, 2012, from www.standardandpoors.com/ratings/sovereigns/ratings
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01.08.2016
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Copyright (c) 2016 Nadežda Semjonova (Author)
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Semjonova, N. (2016). Financial Security in the Baltic States: Comparison with Selected EU Countries. Economics and Business, 29(1), 90-95. https://doi.org/10.1515/eb-2016-0026
