Cuevas, Alfredo; Gonzalez, Maria; López-Marmolejo, Arnoldo - International Monetary Fund (IMF) - 2008
This paper explores how privatizing a pension system can affect sovereign credit risk. For this purpose, it analyzes … the importance that rating agencies give to implicit pension debt (IPD) in their assessments of sovereign creditworthiness …. However, by channeling pension contributions away from the government and creating a deficit of resources to cover the current …