Balance-of-Payments Crisis

Balance-of-Payments Crisis

A situation in which a sovereign entity has developed an unsustainable balance of payments deficit. That is, a balance of payments crisis occurs when so much money is flowing outside a country that it has difficulty borrowing to make up the difference. A balance of payments crisis becomes acute in circumstances like an exceptionally large budget deficit that lasts for an extended period of time or a default on interest payments on publicly-held debt. See also: 1998 Russian Financial Crisis.
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By paying attention to the SME sector, Pakistan can earn export revenue in these sectors which will also address the balance-of-payments crisis of the country.
The EU has supported Ukraine in many ways, particularly in view of the conflict that began in 2014 and at the peak of its balance-of-payments crisis.
Nawaz Sharif had taken a loan from the multilateral lender to stave off a balance-of-payments crisis in 2013, and the facility was completed in September.
Usually, when some currency is at risk, the country has balance-of-payments crisis.
6 billion loan from the International Monetary Fund in 2013 to avert a balance-of-payments crisis and has cleared six programme reviews.
The previous Congress government raised the duty on gold imports several times in 2013 to a record 10 percent to ward off a balance-of-payments crisis and made it compulsory to re-export some of the metal.
While the central bank's action contains the country's currency volatility, reduces financial stress in the economy and thus limits the likelihood of a balance-of-payments crisis, it comes at the cost of significantly weakening Turkey's economic growth prospects," Moody's said in a statement.
4 per cent over the past month even as the IMF approved a loan to avoid a balance-of-payments crisis.
This fund was originally created to meet the needs of countries experiencing a balance-of-payments crisis.
In the midst of a balance-of-payments crisis in 1991, India used a tax-forgiveness plan for NRIs to boost remittances.
2) Arrest deterioration in the country's external payments position in the post-revolution era, reducing the risk of a currency and balance-of-payments crisis.
In the absence of further financial support, Moody's believes that the Central Bank of Egypt will find it increasingly difficult to maintain adequate international liquidity in the months or year ahead, raising the risk of a balance-of-payments crisis.