Domestic Public Debt in Low-Income Countries : Trends and Structure

This paper introduces a new data set on the stock and structure of domestic debt in 36 low-income countries over the period 1971-2011. It characterizes the recent trends regarding the do-mestic public debt of low-income countries and explores the relevance of different arguments put forward on the benefits and costs of government borrowing in local public debt markets. The main stylized fact emerging from the data is the increase in domestic government debt since 1996. It is also observed that poor countries have been able to increase the share of long-term in-struments over time and that maturity lengthening went together with a decrease in borrowing costs. However, the concentration of the investor base, mainly dominated by commercial banks and the central bank, may crowd out lending to the private sector.

Bibliographic Details

Main Authors:	Bua, Giovanna, Pradelli, Juan, Presbitero, Andrea F.
Language:	English en_US
Published:	World Bank, Washington, DC 2014-02
Subjects:	ARREARS, AVERAGE DEBT, BALANCE OF PAYMENT, BALANCE SHEETS, BANK DEPOSITS, BANK FINANCING, BANK HOLDING, BANK HOLDINGS, BANK INVESTORS, BANK LENDING, BANK LIQUIDITY, BANKING CRISIS, BANKING INSTITUTIONS, BANKING SYSTEM, BENCHMARK YIELD, BENCHMARK YIELD CURVE, BOND, BONDS, BORROWING COST, BORROWING COSTS, BUDGET DEFICITS, CAPITAL ADEQUACY, CAPITAL FLOW, CAPITAL FLOWS, CAPITAL MARKETS, CAPTIVE MARKETS, CENTRAL BANK, CENTRAL BANKS, CENTRAL GOVERNMENT DEBT, COLLATERAL, COMMERCIAL BANK, COMMERCIAL BANK LOANS, COMMERCIAL BANKS, CONTRACTUAL OBLIGATIONS, CORPORATE BOND, CREDIT CONSTRAINTS, CREDIT FLOWS, CREDIT RATIONING, CREDIT RISK, CREDITOR, CREDITORS, CURRENCY, CURRENCY COMPOSITION, CURRENCY CRISIS, CURRENCY DEPRECIATION, CURRENCY DEVALUATIONS, CURRENCY MISMATCH, CURRENCY MISMATCHES, CURRENCY RISK, DEBENTURES, DEBT BURDEN, DEBT BURDENS, DEBT COMPOSITION, DEBT CRISIS, DEBT DATABASE, DEBT INSTRUMENT, DEBT LEVEL, DEBT RELIEF, DEBT RESTRUCTURING, DEBT SECURITIES, DEBT SERVICE, DEBT STOCK, DEBTOR, DEFAULT RISKS, DEFICIT FINANCING, DEMAND-SIDE FACTORS, DEPOSIT, DERIVATIVES, DEVELOPING COUNTRIES, DOMESTIC BANKS, DOMESTIC BORROWING, DOMESTIC CURRENCY, DOMESTIC DEBT, DOMESTIC DEBT INSTRUMENTS, DOMESTIC DEBT MARKET, DOMESTIC DEBTS, DOMESTIC FINANCIAL MARKETS, ECONOMIC DEVELOPMENT, EFFICIENT MARKET, EMERGING MARKETS, EXPENDITURES, EXTERNAL BORROWING, EXTERNAL DEBT, EXTERNAL INDEBTEDNESS, FINANCIAL CRISIS, FINANCIAL DEVELOPMENT, FINANCIAL INSTRUMENT, FINANCIAL INSTRUMENTS, FINANCIAL LIBERALIZATION, FINANCIAL MANAGEMENT, FINANCIAL STABILITY, FINANCIAL SUPPORT, FINANCIAL SYSTEM, FISCAL DEFICIT, FOREIGN CURRENCY, FOREIGN DEBT, FOREIGN DIRECT INVESTMENT, FOREIGN EXCHANGE, FOREIGN EXCHANGE MARKET, FOREIGN EXCHANGE RESERVES, FOREIGN FINANCING, GLOBAL DEVELOPMENT FINANCE, GOVERNMENT BORROWING, GOVERNMENT DEBT, GOVERNMENT DEBT MARKET, GOVERNMENT DEBT MARKETS, GOVERNMENT FINANCE, GOVERNMENT FINANCING, HOLDING, IMPLICIT INTEREST, INDIVIDUAL INVESTORS, INFLATION, INFLATION RATE, INFLATION RISK, INFLATIONARY PRESSURES, INSTITUTIONAL INVESTORS, INSTRUMENT, INSURANCE, INSURANCE COMPANIES, INTEREST PAYMENT, INTEREST PAYMENTS, INTEREST RATE, INTEREST RATE RISKS, INTEREST RATES, INTERNAL FINANCING, INTERNATIONAL BANK, INTERNATIONAL CAPITAL, INTERNATIONAL CAPITAL MARKETS, INTERNATIONAL FINANCIAL INSTITUTIONS, INVESTING, INVESTMENT HORIZONS, INVESTMENT PROJECTS, INVESTOR BASE, ISSUANCE, LEGAL OWNERSHIP, LENDERS, LEVY, LIQUID ASSETS, LOCAL CURRENCY, LOCAL FINANCIAL MARKETS, LOCAL GOVERNMENT, LOCAL MARKETS, LONG TERM DEBT, LONG-TERM DEBT, LONG-TERM GOVERNMENT SECURITIES, LONG-TERM INSTRUMENTS, LONG-TERM INVESTMENT, LONG-TERM LIABILITIES, MACROECONOMIC ENVIRONMENT, MACROECONOMIC INSTABILITY, MACROECONOMIC MANAGEMENT, MACROECONOMIC POLICIES, MACROECONOMIC POLICY, MACROECONOMIC STABILITY, MARKET DEPTH, MARKET DEVELOPMENT, MARKET YIELD, MARKETABLE DEBT, MARKETABLE INSTRUMENTS, MARKETABLE SECURITIES, MATURITIES, MATURITY, MATURITY MISMATCH, MATURITY STRUCTURE, MONETARY AUTHORITY, MONETARY POLICY, MONEY SUPPLY, MORAL HAZARD, MORAL SUASION, MUTUAL FUNDS, NATIONAL SAVINGS, NET DEBT, OVERDRAFT FACILITIES, PENSION, PENSION FUNDS, POLICY RESPONSES, PORTFOLIO, PORTFOLIO ALLOCATION, PORTFOLIOS, PRIVATE BORROWERS, PRIVATE INVESTMENT, PRIVATE LENDERS, PRIVATE LENDING, PUBLIC DEBT, PUBLIC DEBT DATA, PUBLIC DEBT INSTRUMENTS, PUBLIC DEBT MANAGEMENT, PUBLIC DEBT MARKETS, PUBLIC FINANCES, PUBLIC INVESTMENT, PUBLIC SECTOR DEBT, PUBLIC SPENDING, REAL EXCHANGE RATE, REAL INTEREST, REAL INTEREST RATES, REMITTANCES, RETAIL INVESTORS, RISK PROFILE, RISK SHARING, SECONDARY MARKETS, SECURITY MARKET, SHORT-TERM INSTRUMENTS, SOLVENCY, SOVEREIGN BONDS, SOVEREIGN DEFAULTS, SOVEREIGN GUARANTEE, STOCK MARKETS, STOCKS, T-BILLS, TRADING, TREASURY, TREASURY BILLS, VALUATION, WEALTH EFFECTS,
Online Access:	http://documents.worldbank.org/curated/en/2014/02/18937088/domestic-public-debt-low-income-countries-trends-structure https://hdl.handle.net/10986/17320
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