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Some Effects Of Imf Lending Programs In The Mena Countries, Jorge Martinez-Vazquez, Wasseem Mina

ECON Publications

The goal of this paper is to examine whether IMF lending programs in the MENA region lead international lenders to perceive lower lending risks and generate moral hazard as reflected in a shift in the maturity composition of international debt toward long-term debt flows. We find that IMF credit in general generated moral hazard in MENA after the IMF large-scale rescue package to Mexico.