Does IDA Engage in Defensive Lending?

Geginat, Carolin ; Kraay, Aart

World Bank, Washington, DC

关键词: ACCOUNTING;    ADMINISTRATIVE EXPENSES;    AMOUNT OF DEBT;    ARREARS;    BAILOUTS;   

DOI  :  10.1596/1813-9450-4328
RP-ID  :  WPS4328

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

Multilateral development banks arefrequently accused of "defensive lending," thepractice of extending new loans purely in order to ensurethat existing loans are repaid.This paper empiricallyexamine this hypothesis using data on lending by andrepayments to the International Development Association(IDA), which is the largest provider of concessionaldevelopment loans to low-income countries.The authorsargue that key institutional features of IDA both (i)potentially create incentives for defensive lending, and(ii) enable particularly sharp tests of the defensivelending hypothesis.The authors find that there is asurprisingly robust partial correlation betweendisbursements on new IDA loans and repayments on existingloans.However, a closer look at the evidence suggests thatdefensive lending is unlikely to be a major explanation forthis partial correlation.