Local Currency Bond Markets Law Reform: A Methodology for Emerging Markets and Developing Economies

By Wouter Bossu, Cory Hillier, Wolfgang Bergthaler

November 20, 2020

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Format: Chicago

Wouter Bossu, Cory Hillier, and Wolfgang Bergthaler. Local Currency Bond Markets Law Reform: A Methodology for Emerging Markets and Developing Economies, (USA: International Monetary Fund, 2020) accessed September 20, 2024

Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary

Recent financial crises including the ongoing one caused by the COVID-19 pandemic have consistently drawn attention to the need to strengthen the quality of public debt management in emerging markets and developing countries. Deeper and more efficient domestic government debt markets—being, a key segment of the LCBM for many emerging markets and developing economies—play a key role in reducing financial vulnerability to shocks and enable governments to finance critical economic and fiscal policy measures in response to them. Policymakers and international organizations have long recognized that developing and strengthening LCBMs is a key policy prescription to sound public debt management. Robust legal and regulatory frameworks are recognized as being critical building blocks for the structure, development and functioning of LCBMs. This Working Paper seeks to outline a strategically anchored methodology that can be applied to design, build and implement the legal and tax foundations for the development of LCBMs that would adequately address common challenges and impediments.

Subject: Bonds, Capital markets, Financial institutions, Financial markets, Legal support in revenue administration, Revenue administration, Securities, Tax law, Tax policy

Keywords: Bonds, Capital markets, Commercial paper, Dematerialized securities, Development, Financial stability, Global, Law framework, Legal and tax frameworks, Legal support in revenue administration, Local currency bond markets, Repurchase agreement, Securities, Securities lending, Settlement system, Tax law, Tax law framework, Tax treatment, WP

Publication Details

Pages:

61
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2020/258
Stock No:

WPIEA2020258
ISBN:

9781513561608
ISSN:

1018-5941

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