How to order
IMF Publications

Working Papers in full text
2015 2014 2013 2012 2011 2010 2009 2008 2007 2006 2005 2004 2003 2002 2001 2000 1999 1998 1997 All

Other research-related activities and publications of the IMF can be found at IMF Research

Free Email Notification

Receive emails when we post new items of interest to you.

Subscribe or Modify your profile

Beyond Aid: How Much Should African Countries Pay to Borrow?

Author/Editor: Gueye, Cheikh A. | Sy, Amadou N. R.
Authorized for Distribution: June 1, 2010
Electronic Access: Free Full Text (PDF file size is 1,241KB)
Use the free Adobe Acrobat Reader to view this PDF file.
Disclaimer: This Working Paper should not be reported as representing the views of the IMF. The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate.

Summary: Post debt relief, the number of African countries considering accessing international capital markets, often to fund large infrastructure projects, is increasing. Potential risks of capital inflows are well known but the literature offers little help to estimate the cost of borrowing internationally for the first time. This paper proposes a two-step approach to estimate the sovereign credit rating and interest rate cost of a country considering borrowing externally. Estimates can be used to assess the costs and benefits of different financing options. The method can also be used to construct foreign currency as well as domestic local currency yield curves.
Order a print copy
Series: Working Paper No. 10/140
Subject(s): External borrowing | External financing | Capital inflows | International bond markets | International capital markets | Infrastructure | Low-income developing countries | Africa
Author's keyword(s): Credit Ratings | Debt | First-Time Issuers | Push and Pull Factors | Sovereign Bonds | Spreads | Sub-Saharan Africa
    Published:   June 1, 2010        
            Format:   Paper
    Stock No:   WPIEA2010140   Pages:   21
    Price:   US$18.00
Please address any questions about this title to