Developing the Domestic Government Debt Market : From Diagnostics to Reform Implementation
This is the second volume of a study on the insights from a 12-country pilot program on public debt management and domestic government debt market development. The discussion of domestic government debt market development in this book uses a buildi...
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| Format: | Publication |
| Language: | English en_US |
| Published: |
Washington, DC: World Bank
2012
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| Online Access: | http://documents.worldbank.org/curated/en/2007/01/8072902/developing-domestic-government-debt-market-diagnostics-reform-implementation http://hdl.handle.net/10986/6707 |
| Summary: | This is the second volume of a study on
the insights from a 12-country pilot program on public debt
management and domestic government debt market development.
The discussion of domestic government debt market
development in this book uses a building block approach to
gain insights into development priorities and approaches
across the 12 countries in the pilot program. Chapter 2
discusses the essential importance of money markets for the
development of a government securities market. Chapter 3
addresses primary markets and describes how the authorities
borrow in the domestic market, including the selection of
instruments, issuance techniques, and relationships with
financial intermediaries. Chapter 4 explains that the 12
pilot-program countries vary considerably in the composition
of investors, but few have well-established contractual
savings institutions and in all countries commercial banks
play a dominant role. Chapter 5 considers the importance of
well-functioning secondary markets for providing a
cost-efficient environment in which market participants can
trade government securities in a fair and transparent
manner. Chapter 6 describes how an efficient securities
custody and settlement infrastructure strengthens investor
confidence, limits exposure to systemic risk, and reduces
transactions costs. Chapter 7 discusses the importance of
sound debt market regulation. Finally, chapter 8 highlights
the complexity of reform programs, the interaction between
different aspects of debt markets, and the importance of
path dependence (that is, previous outcomes and measures) in
debt market development. |
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