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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Latvia chose not to follow this standard response to a balance-of-payments crisis.
This fund was originally created to meet the needs of countries experiencing a balance-of-payments crisis.
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.
The IMF package should be sufficient to prevent the country falling into a full-blown balance-of-payments crisis," London-based Capital Economics Ltd.
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.
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.
For now, Pakistan is unlikely to plunge back into a balance-of-payments crisis of the kind that forced it to call in the IMF in November 2008.
The IMF loan package was agreed to in November 2008 to help avert a balance-of-payments crisis and shore up reserves.
Instead it could lead from the front by taking bold steps toward reforms as it did in 1991 on the back of the balance-of-payments crisis.
i(t-1)]); the recent occurrence of a currency or balance-of-payments crisis ([D.
So to tie it all up, what the central bank faced in many ways was a very standard problem: a fiscal and balance-of-payments crisis, which we countered with fairly standard tools (fiscal tightening and balance-of-payment support).