Low-Income Countries’ Access to Private Debt Markets

Private debt flows to developing countries surged to record levels over the period 2003-07. A few low-income countries have gained access to the international bond market but the bulk of the flows have continued to go to just a few large middle-income countries. Most low-income countries still heavily depend on concessional loans and grants from the official sector to meet their financing needs. The paper provides an overview of low-income countries' access to cross-border bank lending and bond issuance in the international market over the past few decades. It highlights some stylized facts that characterize salient features of low-income countries' experience in external borrowing from the private sector and discusses the various factors that influence governments' and corporations' decisions to seek external financing along with creditors' decisions to provide the financing. The paper concludes by assessing the prospects for low-income countries' access to private debt markets over the medium term.

Bibliographic Details

Main Author:	Hostland, Doug
Language:	English
Published:	2009-01-01
Subjects:	ACCOUNTING, ASSET CLASS, ASYMMETRIC INFORMATION, AVAILABILITY OF CREDIT, AVERAGE DEBT, BALANCE OF PAYMENTS, BANK LENDING, BANK LOAN, BANK LOANS, BASIS POINTS, BINDING CONSTRAINT, BOND INDEXES, BOND ISSUANCE, BOND ISSUE, BOND ISSUES, BOND SPREAD, BOND SPREADS, BONDS, BORROWING REQUIREMENTS, BUDGET DEFICITS, BUSINESS CLIMATE, CALCULATION, CAPITAL ACCOUNTS, CAPITAL FLOW, CAPITAL FLOWS, CAPITAL INFLOWS, CENTRAL GOVERNMENT DEBT, COLLATERAL, COMMERCIAL BANK, COMMERCIAL BANKS, COMMERCIAL TERMS, COMMODITY, COMMODITY PRICES, CORPORATE BOND, CORPORATE BOND ISSUANCE, CORPORATE BONDS, CREDIT RATING, CREDIT RATINGS, CREDIT RATIONING, CREDIT-RATING AGENCIES, CREDITORS, CURRENCY CRISES, CURRENT ACCOUNT, CURRENT ACCOUNT DEFICITS, DEBT BURDEN, DEBT BURDENS, DEBT CRISES, DEBT CRISIS, DEBT DEFAULT, DEBT INSTRUMENTS, DEBT ISSUANCE, DEBT LEVELS, DEBT MANAGEMENT, DEBT OUTSTANDING, DEBT RELIEF, DEBT SECURITIES, DEBT SUSTAINABILITY, DEBTOR, DEBTOR REPORTING SYSTEM, DEBTORS, DEFAULT RISK, DEFAULTS, DERIVATIVE, DERIVATIVE MARKETS, DEVELOPING COUNTRIES, DEVELOPMENT BANK, DISBURSEMENTS, DOMESTIC BORROWING, DOMESTIC CAPITAL, DOMESTIC CAPITAL MARKETS, DOMESTIC CURRENCY, DOMESTIC DEBT, DOMESTIC DEBT MARKETS, DOMESTIC FINANCIAL MARKET, DOMESTIC FINANCIAL MARKETS, DOMESTIC INTEREST RATES, DOMESTIC MARKET, DOMESTIC MARKETS, ECONOMIC POLICIES, EMERGING ECONOMIES, EMERGING MARKET, EMERGING MARKET BOND, EMERGING MARKET COUNTRIES, EMERGING MARKET DEBT, EMERGING MARKET ECONOMIES, EMERGING MARKETS, EQUITY FLOWS, EQUITY ISSUANCE, EQUITY MARKETS, EUROBOND, EXTERNAL BORROWING, EXTERNAL DEBT, EXTERNAL FINANCE, EXTERNAL FINANCING, FEDERAL RESERVE, FEDERAL RESERVE BANK, FINANCIAL CRISIS, FINANCIAL FLOWS, FINANCIAL INSTITUTIONS, FINANCIAL SECTOR, FINANCIAL SECTOR DEVELOPMENT, FINANCIAL STABILITY, FISCAL POLICY, FLEXIBLE EXCHANGE RATE, FOREIGN DIRECT INVESTMENT, FOREIGN INVESTORS, FUND MANAGERS, GLOBAL CAPITAL, GLOBAL CAPITAL MARKETS, GLOBAL FINANCIAL STABILITY, GLOBALIZATION, GOVERNMENT BOND, GOVERNMENT BOND YIELDS, GOVERNMENT DEBT, IMPLICIT INTEREST, INCOME LEVEL, INCOME LEVELS, INCOME SOURCE, INCOMES, INFLATION, INFLATION RATES, INFORMATION CONSTRAINTS, INSTITUTIONAL INVESTORS, INSURANCE, INTEREST RATE, INTEREST RATES, INTERNATIONAL BANK, INTERNATIONAL BOND, INTERNATIONAL BOND MARKET, INTERNATIONAL CAPITAL, INTERNATIONAL CAPITAL MARKETS, INTERNATIONAL DEBT, INTERNATIONAL DEBT MARKET, INTERNATIONAL DEVELOPMENT, INTERNATIONAL FINANCIAL INTEGRATION, INTERNATIONAL FINANCIAL MARKETS, INTERNATIONAL FINANCIAL STATISTICS, INTERNATIONAL INTEREST, INTERNATIONAL MARKET, INTERNATIONAL MARKETS, INVESTMENT BANKS, INVESTMENT CLIMATE, INVESTMENT FUNDS, INVESTMENT OPPORTUNITIES, INVESTOR BASE, INVESTOR CONFIDENCE, LEVY, LIQUIDITY, LOAN TRANSACTIONS, LONG-TERM LOANS, LOW INCOME, LOW INTEREST RATES, LOW- INCOME, LOW-INCOME, LOWER INCOME, MACROECONOMIC DATA, MACROECONOMIC ENVIRONMENT, MACROECONOMIC INSTABILITY, MACROECONOMIC VOLATILITY, MARKET ACCESS, MARKET CONDITIONS, MARKET INTEREST RATES, MARKET LIQUIDITY, MARKET PARTICIPANTS, MATURITIES, MATURITY, MATURITY STRUCTURE, MONETARY FUND, MONEY MARKET, MORAL HAZARD, MUTUAL FUNDS, OUTSTANDING DEBT, PENSION, PORTFOLIO, PRIVATE CAPITAL, PRIVATE CAPITAL INFLOWS, PRIVATE CREDIT, PRIVATE CREDITORS, PRIVATE DEBT, PRIVATE DEBT FLOWS, PRIVATE DEBT MARKET, PRIVATE DEBT MARKETS, PRIVATE EQUITY, PRIVATE PLACEMENT, PRIVATE SECTOR CREDIT, PROFITABLE INVESTMENT, PUBLIC BANK, PUBLIC DEBT, PUBLIC INVESTMENT, PUBLIC SECTOR BORROWING, REMITTANCES, REPUDIATION, RESEARCH ASSISTANCE, RESERVES, RETURNS, RISK OF DEFAULT, SAVINGS, SHORT-TERM DEBT, SOVEREIGN BOND, SOVEREIGN BONDS, SOVEREIGN DEBT, SOVEREIGN ISSUE, SOVEREIGN ISSUERS, SOVEREIGN ISSUES, TOTAL DEBT, TRADE FINANCING, TRANSACTIONS COSTS, TREASURY, TREASURY BILL, TREASURY BILLS, TREASURY BONDS, VALUABLE,
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_20090130150450 https://hdl.handle.net/10986/4026
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