Republic of Tunisia : Strategy for Public Debt Management
The need for an effective public debt management strategy has increased with Tunisia's stronger presence in the international financial markets and the larger exposure to changing borrowing conditions and exchange rate fluctuations. At the sam...
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| Format: | Debt and Creditworthiness Study |
| Language: | English en_US |
| Published: |
Washington, DC
2013
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| Online Access: | http://documents.worldbank.org/curated/en/2004/01/2874309/tunisia-strategy-public-debt-management http://hdl.handle.net/10986/14673 |
| Summary: | The need for an effective public debt
management strategy has increased with Tunisia's
stronger presence in the international financial markets and
the larger exposure to changing borrowing conditions and
exchange rate fluctuations. At the same time, there are
better conditions today for public debt management, with the
deepening the secondary market for Tunisian debt
instruments on the international bond market, while the
public debt management strategy would be greatly
strengthened by the steps taken to develop the domestic
government securities market. This study discusses options
to the reform of the government public debt management
practices, with the aim of increasing their efficiency,
consolidating further the country's market access and
containing the costs and risks of borrowing in both external
and domestic markets. The study is intended to facilitate
the introduction of an action plan for the implementation of
the public debt management strategy, as part of the set of
measures aiming at strengthening the macroeconomic framework
in Third Economic Competitiveness Adjustment Loan Project
(report no. P7489). Chapter One presents debt sustainability
scenarios and discusses the underlying vulnerability
factors. Chapter Two examines key principles of a strategy
for public debt management, and presents a discussion of how
active risk management can be progressively introduced in
Tunisia. The analysis benchmarks Tunisia's debt
situation against other emerging economies with comparable
characteristics. Chapter Three addresses reform options to
step up the development of domestic government securities
market-a key component of the strategy. Finally, Chapter
Four considers options in institutional reforms that would
facilitate the implementation of the desired innovations in
debt management strategy and operations. |
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