Public Debt Management in Emerging Market Economies : Has This Time Been Different?
Despite the scale of the global financial crisis, to date it has not resulted in a sovereign debt crisis among emerging market countries. Two significant factors in this outcome are the improved macroeconomic management and public debt management i...
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| Format: | Policy Research Working Paper |
| Language: | English |
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2012
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| Online Access: | http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100813134031 http://hdl.handle.net/10986/3883 |
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okr-10986-3883 |
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oai_dc |
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Digital Repository |
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Foreign Institution |
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Digital Repositories |
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World Bank Open Knowledge Repository |
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World Bank |
| language |
English |
| topic |
ASSET POSITION AUCTION AUCTIONS BAILOUT BANK FINANCING BANKING SECTOR BANKRUPTCY BASIS POINTS BOND AUCTIONS BOND FUND BOND FUNDS BOND INDEX BOND MARKETS BOND PRICES BOND YIELDS BONDS BORROWING COSTS BORROWING PLANS BORROWING REQUIREMENTS BORROWING STRATEGIES BUY BACKS BUYBACK BUYBACKS CAPITAL FLOWS CAPITAL INFLOWS CAPITAL MARKETS DEVELOPMENT CAPITAL MOBILITY CAPITAL OUTFLOWS CASH FLOWS CASH RESERVES CDS CENTRAL BANK CENTRAL BANKS COMMERCIAL BANKS COMMODITY COMMODITY PRICES CREDIBILITY CREDIT DEFAULT CREDIT DEFAULT SWAP CREDIT LINES CREDITORS CURRENCY CURRENCY COMPOSITION CURRENCY DEPRECIATION CURRENCY RISK DEBT CRISES DEBT CRISIS DEBT FINANCING DEBT INSTRUMENTS DEBT ISSUANCE DEBT LEVELS DEBT MARKET DEVELOPMENT DEBT RATIO DEBT RATIOS DEBT SERVICING DEBT SERVICING COSTS DEBT STOCK DEBT STOCKS DEVALUATION DEVALUATIONS DISBURSEMENT DOMESTIC BOND DOMESTIC BOND MARKETS DOMESTIC BORROWING DOMESTIC CREDIT DOMESTIC DEBT DOMESTIC DEBT MARKET DOMESTIC DEBT MARKETS DOMESTIC DEBT SECURITIES DOMESTIC FINANCIAL MARKET DOMESTIC INSTITUTIONAL INVESTORS DOMESTIC MARKET DOMESTIC SECURITIES ECONOMIC CRISES ECONOMIC CRISIS ECONOMIC DOWNTURN EMERGING MARKET EMERGING MARKET BOND EMERGING MARKET COUNTRIES EMERGING MARKET ECONOMIES EMERGING MARKETS EMERGING-MARKET EXCESS LIQUIDITY EXCESS SUPPLY EXCHANGE RATE EXCHANGE RATES EXPOSURE EXPOSURES EXTERNAL DEBT EXTERNAL FUNDING FEDERAL RESERVE FEDERAL RESERVE BANK FINANCIAL CRISIS FINANCIAL FRAGILITY FINANCIAL INSTITUTIONS FINANCIAL MARKETS FINANCIAL SECTOR FINANCIAL STABILITY FINANCIAL SYSTEM FISCAL DEFICITS FISCAL POLICIES FISCAL POLICY FIXED RATE FLOATERS FLOATING RATE FLOATING RATE NOTES FOREIGN CURRENCY FOREIGN CURRENCY DEBT FOREIGN INTEREST FOREIGN INVESTOR FOREIGN INVESTORS FOREIGN MARKETS GLOBAL BOND GLOBAL BONDS GLOBAL CAPITAL GLOBAL CAPITAL MARKETS GLOBAL FINANCIAL STABILITY GOVERNMENT BOND GOVERNMENT BONDS GOVERNMENT BUDGETS GOVERNMENT DEBT GOVERNMENT DEFICIT GOVERNMENT FINANCES GOVERNMENT PAPER GOVERNMENT REVENUES GOVERNMENT SECURITIES GROUP OF INVESTORS HOLDING HOLDINGS ILLIQUID SECURITIES INDEBTED COUNTRIES INDEXED BONDS INFLATION INFLATIONARY EXPECTATIONS INSTRUMENT INSURANCE INSURANCE COMPANIES INSURANCE INDUSTRIES INSURANCE REFORMS INTEREST COSTS INTEREST RATE INTEREST RATE RISK INTEREST RATES INTEREST-RATE RISK INTERNATIONAL BANK INTERNATIONAL BONDS INTERNATIONAL CAPITAL INTERNATIONAL CAPITAL MARKETS INTERNATIONAL FINANCIAL INSTITUTIONS INTERNATIONAL RESERVES INTERNATIONAL SECURITIES INTERNATIONAL SETTLEMENTS INVESTOR BASE INVESTOR CONFIDENCE ISSUANCE ISSUANCE OF T-BILLS ISSUANCES LIABILITY LIABILITY MANAGEMENT LIQUID INSTRUMENTS LIQUIDITY LIQUIDITY CRISES LIQUIDITY POSITION LOCAL CURRENCIES LOCAL CURRENCY LOCAL INVESTOR LOCAL MARKETS MACROECONOMIC MANAGEMENT MACROECONOMIC POLICIES MACROECONOMIC POLICY MARKET ACCESS MARKET BORROWING MARKET CONDITIONS MARKET DEVELOPMENTS MARKET ENVIRONMENT MARKET INSTABILITY MARKET INSTRUMENTS MARKET LIQUIDITY MARKETABLE SECURITIES MATURE MARKETS MATURITIES MATURITY MONETARY FUND MONETARY POLICIES MONETARY POLICY MUTUAL FUNDS NATURAL DISASTERS NEGATIVE SHOCK PENSION PENSION FUNDS POLICY RESPONSE PORTFOLIO PORTFOLIO FLOWS PORTFOLIOS PRICE DISCOVERY PRICE STABILITY PRIVATE CAPITAL PRIVATE SECTOR DEVELOPMENT PUBLIC DEBT PUBLIC DEBT MANAGEMENT PUBLIC DEBT MANAGERS REMITTANCES RENEGOTIATIONS RESERVES RETAIL DEBT RISK AVERSION RISK MANAGEMENT SAMURAI BOND SECONDARY MARKETS SECURITIES SECURITIES MARKETS SHAREHOLDERS SHORT-TERM INSTRUMENTS SHORT-TERM INTEREST RATES SOVEREIGN DEBT STOCKS SUKUK T-BILL TOTAL DEBT TREASURY YIELD CURVE YIELD CURVES |
| spellingShingle |
ASSET POSITION AUCTION AUCTIONS BAILOUT BANK FINANCING BANKING SECTOR BANKRUPTCY BASIS POINTS BOND AUCTIONS BOND FUND BOND FUNDS BOND INDEX BOND MARKETS BOND PRICES BOND YIELDS BONDS BORROWING COSTS BORROWING PLANS BORROWING REQUIREMENTS BORROWING STRATEGIES BUY BACKS BUYBACK BUYBACKS CAPITAL FLOWS CAPITAL INFLOWS CAPITAL MARKETS DEVELOPMENT CAPITAL MOBILITY CAPITAL OUTFLOWS CASH FLOWS CASH RESERVES CDS CENTRAL BANK CENTRAL BANKS COMMERCIAL BANKS COMMODITY COMMODITY PRICES CREDIBILITY CREDIT DEFAULT CREDIT DEFAULT SWAP CREDIT LINES CREDITORS CURRENCY CURRENCY COMPOSITION CURRENCY DEPRECIATION CURRENCY RISK DEBT CRISES DEBT CRISIS DEBT FINANCING DEBT INSTRUMENTS DEBT ISSUANCE DEBT LEVELS DEBT MARKET DEVELOPMENT DEBT RATIO DEBT RATIOS DEBT SERVICING DEBT SERVICING COSTS DEBT STOCK DEBT STOCKS DEVALUATION DEVALUATIONS DISBURSEMENT DOMESTIC BOND DOMESTIC BOND MARKETS DOMESTIC BORROWING DOMESTIC CREDIT DOMESTIC DEBT DOMESTIC DEBT MARKET DOMESTIC DEBT MARKETS DOMESTIC DEBT SECURITIES DOMESTIC FINANCIAL MARKET DOMESTIC INSTITUTIONAL INVESTORS DOMESTIC MARKET DOMESTIC SECURITIES ECONOMIC CRISES ECONOMIC CRISIS ECONOMIC DOWNTURN EMERGING MARKET EMERGING MARKET BOND EMERGING MARKET COUNTRIES EMERGING MARKET ECONOMIES EMERGING MARKETS EMERGING-MARKET EXCESS LIQUIDITY EXCESS SUPPLY EXCHANGE RATE EXCHANGE RATES EXPOSURE EXPOSURES EXTERNAL DEBT EXTERNAL FUNDING FEDERAL RESERVE FEDERAL RESERVE BANK FINANCIAL CRISIS FINANCIAL FRAGILITY FINANCIAL INSTITUTIONS FINANCIAL MARKETS FINANCIAL SECTOR FINANCIAL STABILITY FINANCIAL SYSTEM FISCAL DEFICITS FISCAL POLICIES FISCAL POLICY FIXED RATE FLOATERS FLOATING RATE FLOATING RATE NOTES FOREIGN CURRENCY FOREIGN CURRENCY DEBT FOREIGN INTEREST FOREIGN INVESTOR FOREIGN INVESTORS FOREIGN MARKETS GLOBAL BOND GLOBAL BONDS GLOBAL CAPITAL GLOBAL CAPITAL MARKETS GLOBAL FINANCIAL STABILITY GOVERNMENT BOND GOVERNMENT BONDS GOVERNMENT BUDGETS GOVERNMENT DEBT GOVERNMENT DEFICIT GOVERNMENT FINANCES GOVERNMENT PAPER GOVERNMENT REVENUES GOVERNMENT SECURITIES GROUP OF INVESTORS HOLDING HOLDINGS ILLIQUID SECURITIES INDEBTED COUNTRIES INDEXED BONDS INFLATION INFLATIONARY EXPECTATIONS INSTRUMENT INSURANCE INSURANCE COMPANIES INSURANCE INDUSTRIES INSURANCE REFORMS INTEREST COSTS INTEREST RATE INTEREST RATE RISK INTEREST RATES INTEREST-RATE RISK INTERNATIONAL BANK INTERNATIONAL BONDS INTERNATIONAL CAPITAL INTERNATIONAL CAPITAL MARKETS INTERNATIONAL FINANCIAL INSTITUTIONS INTERNATIONAL RESERVES INTERNATIONAL SECURITIES INTERNATIONAL SETTLEMENTS INVESTOR BASE INVESTOR CONFIDENCE ISSUANCE ISSUANCE OF T-BILLS ISSUANCES LIABILITY LIABILITY MANAGEMENT LIQUID INSTRUMENTS LIQUIDITY LIQUIDITY CRISES LIQUIDITY POSITION LOCAL CURRENCIES LOCAL CURRENCY LOCAL INVESTOR LOCAL MARKETS MACROECONOMIC MANAGEMENT MACROECONOMIC POLICIES MACROECONOMIC POLICY MARKET ACCESS MARKET BORROWING MARKET CONDITIONS MARKET DEVELOPMENTS MARKET ENVIRONMENT MARKET INSTABILITY MARKET INSTRUMENTS MARKET LIQUIDITY MARKETABLE SECURITIES MATURE MARKETS MATURITIES MATURITY MONETARY FUND MONETARY POLICIES MONETARY POLICY MUTUAL FUNDS NATURAL DISASTERS NEGATIVE SHOCK PENSION PENSION FUNDS POLICY RESPONSE PORTFOLIO PORTFOLIO FLOWS PORTFOLIOS PRICE DISCOVERY PRICE STABILITY PRIVATE CAPITAL PRIVATE SECTOR DEVELOPMENT PUBLIC DEBT PUBLIC DEBT MANAGEMENT PUBLIC DEBT MANAGERS REMITTANCES RENEGOTIATIONS RESERVES RETAIL DEBT RISK AVERSION RISK MANAGEMENT SAMURAI BOND SECONDARY MARKETS SECURITIES SECURITIES MARKETS SHAREHOLDERS SHORT-TERM INSTRUMENTS SHORT-TERM INTEREST RATES SOVEREIGN DEBT STOCKS SUKUK T-BILL TOTAL DEBT TREASURY YIELD CURVE YIELD CURVES Anderson, Phillip R. D. Silva, Anderson Caputo Velandia-Rubiano, Antonio Public Debt Management in Emerging Market Economies : Has This Time Been Different? |
| geographic_facet |
The World Region The World Region |
| relation |
Policy Research working paper ; no. WPS 5399 |
| description |
Despite the scale of the global
financial crisis, to date it has not resulted in a sovereign
debt crisis among emerging market countries. Two significant
factors in this outcome are the improved macroeconomic
management and public debt management in these countries
over the past decade. This paper reviews the improvements in
macroeconomic fundamentals and the composition of public
debt portfolios in emerging market countries prior to the
crisis and concludes that the policies and strategies
pursued by governments provided them with a buffer when the
crisis hit. Nevertheless, with the international capital
markets effectively closed for over three months and
domestic borrowing in many cases impacted by extreme risk
aversion, government debt managers were required to adapt
their strategies to rapidly changing circumstances. The
paper reviews the impact of the crisis and the responses of
debt managers to the drying up of international capital,
decreased liquidity in markets, and sharply increased term
premia. Three categories of response are identified: (i)
funding from other sources to reduce pressure on market
borrowing; (ii) adapting funding programs to changes in
demand in the different types of securities; and (iii)
implementing liability management operations to support the
market. Most governments were willing to accept temporarily
greater risk in their portfolios, often reversing long
established strategies, at a time when financial markets
were under stress. These actions contributed to the measures
taken by governments to stabilize markets and prevent
economies from stalling. Looking to the future, government
debt managers will need to consider how they can increase
the resilience of public debt portfolios for the uncertain
times that lie ahead. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Anderson, Phillip R. D. Silva, Anderson Caputo Velandia-Rubiano, Antonio |
| author_facet |
Anderson, Phillip R. D. Silva, Anderson Caputo Velandia-Rubiano, Antonio |
| author_sort |
Anderson, Phillip R. D. |
| title |
Public Debt Management in Emerging Market Economies : Has This Time Been Different? |
| title_short |
Public Debt Management in Emerging Market Economies : Has This Time Been Different? |
| title_full |
Public Debt Management in Emerging Market Economies : Has This Time Been Different? |
| title_fullStr |
Public Debt Management in Emerging Market Economies : Has This Time Been Different? |
| title_full_unstemmed |
Public Debt Management in Emerging Market Economies : Has This Time Been Different? |
| title_sort |
public debt management in emerging market economies : has this time been different? |
| publishDate |
2012 |
| url |
http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100813134031 http://hdl.handle.net/10986/3883 |
| _version_ |
1764388828439642112 |
| spelling |
okr-10986-38832021-04-23T14:02:13Z Public Debt Management in Emerging Market Economies : Has This Time Been Different? Anderson, Phillip R. D. Silva, Anderson Caputo Velandia-Rubiano, Antonio ASSET POSITION AUCTION AUCTIONS BAILOUT BANK FINANCING BANKING SECTOR BANKRUPTCY BASIS POINTS BOND AUCTIONS BOND FUND BOND FUNDS BOND INDEX BOND MARKETS BOND PRICES BOND YIELDS BONDS BORROWING COSTS BORROWING PLANS BORROWING REQUIREMENTS BORROWING STRATEGIES BUY BACKS BUYBACK BUYBACKS CAPITAL FLOWS CAPITAL INFLOWS CAPITAL MARKETS DEVELOPMENT CAPITAL MOBILITY CAPITAL OUTFLOWS CASH FLOWS CASH RESERVES CDS CENTRAL BANK CENTRAL BANKS COMMERCIAL BANKS COMMODITY COMMODITY PRICES CREDIBILITY CREDIT DEFAULT CREDIT DEFAULT SWAP CREDIT LINES CREDITORS CURRENCY CURRENCY COMPOSITION CURRENCY DEPRECIATION CURRENCY RISK DEBT CRISES DEBT CRISIS DEBT FINANCING DEBT INSTRUMENTS DEBT ISSUANCE DEBT LEVELS DEBT MARKET DEVELOPMENT DEBT RATIO DEBT RATIOS DEBT SERVICING DEBT SERVICING COSTS DEBT STOCK DEBT STOCKS DEVALUATION DEVALUATIONS DISBURSEMENT DOMESTIC BOND DOMESTIC BOND MARKETS DOMESTIC BORROWING DOMESTIC CREDIT DOMESTIC DEBT DOMESTIC DEBT MARKET DOMESTIC DEBT MARKETS DOMESTIC DEBT SECURITIES DOMESTIC FINANCIAL MARKET DOMESTIC INSTITUTIONAL INVESTORS DOMESTIC MARKET DOMESTIC SECURITIES ECONOMIC CRISES ECONOMIC CRISIS ECONOMIC DOWNTURN EMERGING MARKET EMERGING MARKET BOND EMERGING MARKET COUNTRIES EMERGING MARKET ECONOMIES EMERGING MARKETS EMERGING-MARKET EXCESS LIQUIDITY EXCESS SUPPLY EXCHANGE RATE EXCHANGE RATES EXPOSURE EXPOSURES EXTERNAL DEBT EXTERNAL FUNDING FEDERAL RESERVE FEDERAL RESERVE BANK FINANCIAL CRISIS FINANCIAL FRAGILITY FINANCIAL INSTITUTIONS FINANCIAL MARKETS FINANCIAL SECTOR FINANCIAL STABILITY FINANCIAL SYSTEM FISCAL DEFICITS FISCAL POLICIES FISCAL POLICY FIXED RATE FLOATERS FLOATING RATE FLOATING RATE NOTES FOREIGN CURRENCY FOREIGN CURRENCY DEBT FOREIGN INTEREST FOREIGN INVESTOR FOREIGN INVESTORS FOREIGN MARKETS GLOBAL BOND GLOBAL BONDS GLOBAL CAPITAL GLOBAL CAPITAL MARKETS GLOBAL FINANCIAL STABILITY GOVERNMENT BOND GOVERNMENT BONDS GOVERNMENT BUDGETS GOVERNMENT DEBT GOVERNMENT DEFICIT GOVERNMENT FINANCES GOVERNMENT PAPER GOVERNMENT REVENUES GOVERNMENT SECURITIES GROUP OF INVESTORS HOLDING HOLDINGS ILLIQUID SECURITIES INDEBTED COUNTRIES INDEXED BONDS INFLATION INFLATIONARY EXPECTATIONS INSTRUMENT INSURANCE INSURANCE COMPANIES INSURANCE INDUSTRIES INSURANCE REFORMS INTEREST COSTS INTEREST RATE INTEREST RATE RISK INTEREST RATES INTEREST-RATE RISK INTERNATIONAL BANK INTERNATIONAL BONDS INTERNATIONAL CAPITAL INTERNATIONAL CAPITAL MARKETS INTERNATIONAL FINANCIAL INSTITUTIONS INTERNATIONAL RESERVES INTERNATIONAL SECURITIES INTERNATIONAL SETTLEMENTS INVESTOR BASE INVESTOR CONFIDENCE ISSUANCE ISSUANCE OF T-BILLS ISSUANCES LIABILITY LIABILITY MANAGEMENT LIQUID INSTRUMENTS LIQUIDITY LIQUIDITY CRISES LIQUIDITY POSITION LOCAL CURRENCIES LOCAL CURRENCY LOCAL INVESTOR LOCAL MARKETS MACROECONOMIC MANAGEMENT MACROECONOMIC POLICIES MACROECONOMIC POLICY MARKET ACCESS MARKET BORROWING MARKET CONDITIONS MARKET DEVELOPMENTS MARKET ENVIRONMENT MARKET INSTABILITY MARKET INSTRUMENTS MARKET LIQUIDITY MARKETABLE SECURITIES MATURE MARKETS MATURITIES MATURITY MONETARY FUND MONETARY POLICIES MONETARY POLICY MUTUAL FUNDS NATURAL DISASTERS NEGATIVE SHOCK PENSION PENSION FUNDS POLICY RESPONSE PORTFOLIO PORTFOLIO FLOWS PORTFOLIOS PRICE DISCOVERY PRICE STABILITY PRIVATE CAPITAL PRIVATE SECTOR DEVELOPMENT PUBLIC DEBT PUBLIC DEBT MANAGEMENT PUBLIC DEBT MANAGERS REMITTANCES RENEGOTIATIONS RESERVES RETAIL DEBT RISK AVERSION RISK MANAGEMENT SAMURAI BOND SECONDARY MARKETS SECURITIES SECURITIES MARKETS SHAREHOLDERS SHORT-TERM INSTRUMENTS SHORT-TERM INTEREST RATES SOVEREIGN DEBT STOCKS SUKUK T-BILL TOTAL DEBT TREASURY YIELD CURVE YIELD CURVES Despite the scale of the global financial crisis, to date it has not resulted in a sovereign debt crisis among emerging market countries. Two significant factors in this outcome are the improved macroeconomic management and public debt management in these countries over the past decade. This paper reviews the improvements in macroeconomic fundamentals and the composition of public debt portfolios in emerging market countries prior to the crisis and concludes that the policies and strategies pursued by governments provided them with a buffer when the crisis hit. Nevertheless, with the international capital markets effectively closed for over three months and domestic borrowing in many cases impacted by extreme risk aversion, government debt managers were required to adapt their strategies to rapidly changing circumstances. The paper reviews the impact of the crisis and the responses of debt managers to the drying up of international capital, decreased liquidity in markets, and sharply increased term premia. Three categories of response are identified: (i) funding from other sources to reduce pressure on market borrowing; (ii) adapting funding programs to changes in demand in the different types of securities; and (iii) implementing liability management operations to support the market. Most governments were willing to accept temporarily greater risk in their portfolios, often reversing long established strategies, at a time when financial markets were under stress. These actions contributed to the measures taken by governments to stabilize markets and prevent economies from stalling. Looking to the future, government debt managers will need to consider how they can increase the resilience of public debt portfolios for the uncertain times that lie ahead. 2012-03-19T18:41:31Z 2012-03-19T18:41:31Z 2010-08-01 http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100813134031 http://hdl.handle.net/10986/3883 English Policy Research working paper ; no. WPS 5399 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper The World Region The World Region |