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The author explores the external liquidity and solvency of Serbia in the 2002-2005 period. He analyses four main groups of indicators concerning the external liquidity and solvency of Serbia: (1) indicators of external liquidity, (2) indicators of external solvency, (3) indicators of exposure the financial risks, and (4) the economy openness degree, which consist of ten most important indicators in international statistics. Comparing them with the indicators for the selected group of nine countries from the broader neighborhood the author gives an insight into the relative external position and rank of Serbia, additionally explaining the factors of its external liquidity and solvency. The results of the comparative analysis do not correspond to the usual meaning of the weak Serbian external position, while the indicators of financial safety are surprising for many experts.

AbstractUsing a large panel of industrial Compustat firms from 1971 to 1988, we find long‐term external financing to be positively related to the period's capital expenditures on growth opportunities, but negatively related to beginning‐of‐the‐period financial slack, broadly defined. These findings support the view that firms tend to match long‐term sources of financing with long‐lived assets, and short‐term debt with short‐lived assets. Our results also reinforce the belief that firms prefer internal to external financing. We find no evidence that firms favor financing capital expenditures with short‐term debt, either permanently or temporarily.

The paper analyses problems arising from the interdependence of liquidity provision in the financial system. Findings document, that liquidity shortage of minor financial players can translate into liquidity shortage for systemic relevant players, thereby putting the proper functioning of the overall financial system on the line. As contractual mechanisms to safeguard against this threat are absent in the wake of market frictions, prudent regulation and governmental provision of external liquidity is asked for in order to solve these problems.

Using the universe of all externally issued bonds by corporates and sovereigns in emerging and developing economies during 2000-14, this paper analyzes various issuance trends, including the unprecedented post-crisis surge. The paper focuses on external issuance at the country-industry and individual bond levels and finds that global factors matter greatly for emerging and developing economies issuance. A decrease in U.S. expected equity market (or interest rate) volatility, U.S. corporate credit spreads, and U.S. interbank funding costs and an increase in the Federal Reserve's balance sheet (i) raise the odds that the monthly issuance volume of a country-industry is above its historical average; (ii) decrease individual bond yields and spreads; and (iii) raise bond maturities, after controlling for country pull factors, bond characteristics (for example, type of issuer, industry, and riskiness). Additionally, we document support that the risk-taking channel of exchange rate appreciation also operates for external bond issuance. Moreover, while the paper finds that country pull factors affect the impact of global factors, it does not find consistent evidence for this across the board. This result suggests that, during loose global funding conditions, flows are mostly driven by push factors and do not systematically discriminate between emerging and developing economies. Taken together, the findings suggest that although issuers might be able to benefit from benign international funding conditions, the large issuance volumes, currency risks, and high exposure to global factors could pose external and domestic challenges for policy makers, particularly when global cycles reverse.

The author explores the external liquidity & solvency of Serbia in the 2002-2005 period. He analyses four main groups of indicators concerning the external liquidity & solvency of Serbia: (1) indicators of external liquidity, (2) indicators of external solvency, (3) indicators of exposure the financial risks, & (4) the economy openness degree, which consist of ten most important indicators in international statistics. Comparing them with the indicators for the selected group of nine countries from the broader neighborhood the author gives an insight into the relative external position & rank of Serbia, additionally explaining the factors of its external liquidity & solvency. The results of the comparative analysis do not correspond to the usual meaning of the weak Serbian external position, while the indicators of financial safety are surprising for many experts. Tables, References. Adapted from the source document.