Balance-of-Payments Crisis

(redirected from 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.
Mentioned in ?
References in periodicals archive ?
Turkey's rating would be revised down if the possibility of a balance of payments crisis increases, there is a sustained lower growth, and the government's fiscal strength would be worsened, in addition to further weakening in institutional strength, the agency said.
The facility, which is designed to alleviate a balance of payments crisis, had been suspended since last June.
They added some of the people were buying the greenback ahead of the expected issue of dollar-denominated bonds for overseas Pakistani workers and Pakistani residents to finance the widening current account deficit and avoid balance of payments crisis.
But in the meantime, the government of Pakistan was entering a serious balance of payments crisis as the foreign exchange reserves depleted to dangerous levels.
5 billion bailout from the International Monetary Fund in June 2016 following a balance of payments crisis.
0 per cent YoY in April 2009 on account of Balance of Payments crisis coupled with the global financial crisis unfolding as Pak rupee drastically depreciated by 33.
The country is heading towards a serious balance of payments crisis and a number of important and urgent matters are pending a decision while the incumbent Finance Minister Ishaq Dar is not ready to come to Pakistan, it said.
Downward pressure on the rating could arise from a renewed decline in the prices of the DRC's main commodity exports, heightening the potential for a balance of payments crisis.
5 billion International Monetary Fund (IMF) loan program that the country needed to avoid a balance of payments crisis, replenish reserves and rebuild confidence among international investors.
Facing both debt and a balance of payments crisis, Sri Lanka sought IMF loan early this year while expressing its willingness for fiscal reforms with an aim of reducing the budget deficit to 3.
5 billion bailout to help the island nation avert a balance of payments crisis.
The Sri Lankan economy is likely to face multiple headwinds over the near-term arising from a volatile agricultural sector, a poor consumer outlook, as well as rising risks of a balance of payments crisis.

Full browser ?