Zusammenfassung:
This paper studies how the maturity structure of external debt is affected by internationalreserves and how they reinforce financial stability through a more crisis-resilientmaturity structure. We show in an illustrative theoretical model that reserves lengthenthe maturity of external debt via a flattening of the yield curve. Using data of 66 emergingand developing countries and applying different econometric approaches, we find robustevidence that reserves increase the share of long-term (LT) relative to short-term (ST)external debt. Results hold for private and public external debt individually. Takingreserves and their effect on the debt maturity structure together, they reinforce financialstability.