Fiscal Consolidation and the Cost of Credit: Evidence from Syndicated Loans


We examine how the cost of corporate credit varies around fiscal consolidations aimed at reducing government debt. Using a new dataset on fiscal consolidations and syndicated corporate loan data, we find that loan spreads increase with fiscal consolidations, especially for small firms, domestic firms, and for firms with limited alternative... READ MORE...

Publication date: February 2013
ISBN 9781475564440

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Publication date: February 2013