Academic Scientific JournalsComparison of External Indebtedness and Debt Sustainability Development in V4 Countries
Keywords:
foreign indebtedness, solvency, liquidity, debt sustainability, capital inflowAbstract
Foreign indebtedness is an important indicator of macroeconomic and financial stability of given economy. Especially regarding the financial crisis of 2008 this indicator regained importance. This article offers a comparative analysis of Visegrad countries regarding the external indebtedness and debt sustainability. Poland, Hungary, Slovakia and the Czech Republic went through a similar transformation process and with the exception of Slovakia they still have their own national currencies. Foreign indebtedness is thus one of the crucial indicators for their monetary development, also regarding that in the past these countries were viewed as one region, which represented the possibility of spill-over effects. The aim of the article is to find out if a negative trend in the development is present in V4 countries as far as the external indebtedness is concerned.
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