Contents
|
| I. |
Overview and Main Conclusions |
| |
A. |
Two Views on the Status Quo |
| |
B. |
Debt Structures with Existing Instruments:
Emerging vs. Advanced Countries |
| |
C. |
Ideas for Sovereigns from the Corporate
Context: Explicit Seniority |
| |
D. |
Expanding the Set of Instruments: Real
Indexation |
| |
E. |
Toward Better Sovereign Debt Structures:
A Roadmap |
|
| II. |
Facts on Existing Public Debt Structures |
| |
A. |
Public Debt in Emerging Markets Compared
to Advanced Countries |
| |
B. |
Sovereign Versus Corporate Liability Structures |
|
| III. |
Rendering Debt Structures Less Crisis-Prone
with Existing Instruments |
| |
A. |
Problems With The Status Quo |
| |
B. |
Determinants of Government Debt Structure |
| |
C. |
Policy Implications |
|
| IV. |
Explicit Seniority in Privately Held
Sovereign Debt |
| |
A. |
The Economic Role of Seniority |
| |
B. |
Approaches and Obstacles in Implementing
Explicit Seniority |
| |
C. |
Conclusions |
|
| V. |
Expanding the Set of Instruments: Indexation
to Real Variables |
| |
A. |
Benefits of Indexing to Real Variables |
| |
B. |
Real Variables Beyond the Control of the
Country's Authorities |
| |
C. |
Real Variables Partially Within the Control
of the Country's Authorities |
| |
D. |
Obstacles for Variables Partly Within
the Control of the Government |
| |
E. |
Steps to Foster Acceptance |
| |
F. |
Real Indexation: Which Variables for Which Countries? |
|
| VI. |
The Past and Future of Innovation in
Sovereign Borrowing |
| |
A. |
Financial Innovation in Sovereign Borrowing:
A Haphazard Process |
| |
B. |
Roadmaps for Future Innovation |
|
| VII. |
Conclusions |
|
| Appendix: Results of a Survey |
|
| References |
|
| Text Boxes: |
| 1. |
Debt Structure and Hedging |
| 2. |
Creating Domestic Markets for Long-term
Local-Currency Bonds: Country Experiences |
| 3. |
Developing International Markets for Bonds
in Emerging Market Currencies |
| 4. |
Enforcing Contractual Seniority |
| 5. |
The Impact Effect of a Switch to First-In-Time Seniority on Borrowing Costs |
| 6. |
Proposals for Indexation to Real Variables |
| 7. |
Benefits of GDP Indexation for Emerging
Markets and Advanced Countries |
| 8. |
Previous Examples of Indexation to Real
Variables |
|
| Text Tables: |
| 1. |
External Sovereign Debt: Currency Composition,
1980-2003 |
| 2. |
Structure of Domestically-issued Government
Bonds at End-2001 |
| 3. |
Structure of Total (Domestic and External)
Central Government Debt |
| 4. |
Top Five Natural Disasters by Percent
of GDP Lost |
| 5. |
Output Growth and Trading Partners Growth,
1970-2002 |
| 6. |
Introduction of Inflation-indexed Securities
by Sovereigns |
|
| Text Figures: |
| 1. |
Advanced and Emerging Market Countries:
Public Debt Stocks and Debt Composition, 1992-2002 |
| 2. |
Structure of External Public Debt: Bonds
Versus Loans, 1980-2003 |
| 3. |
Emerging Markets: Fixed versus Floating-Rate
Sovereign Bond Issues, and Share of Floating Interest Rate Debt in
the EMBIG, 1980-2003 |
| 4. |
Structure of Internationally-Issued Debt:
Maturity Composition |
| 5. |
Emerging Market Countries: Structure of
Public Debt |
| 6. |
All Developing Countries: Public Sector
Bonds and Loans Issued in International Markets, 1980-2002 |
| 7. |
Recent Crises: Impact of the Exchange
Rate Depreciation on the Ratio of Public Debt to GDP |
| 8. |
Share of Long-term Local-currency Bonds
in Total Government Domestic Bonds (in 2001) and Inflation History |
| 9. |
Share of Long-term Local-currency Bonds
in Total Domestically-issued Bonds (in 2001) and Financial Liberalization
Index |
| 10. |
Institutional Quality and Domestically-Issued
Long-Term Local-Currency Debt |
| 11. |
Interest Savings Over the Economic Cycle |
