Financing for the Post-pandemic Recovery: Developing Domestic Sovereign Debt Markets in Central America

By Jean François Clevy, Guilherme Pedras, . Esther Perez Ruiz

December 3, 2021

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Jean François Clevy, Guilherme Pedras, and . Esther Perez Ruiz Financing for the Post-pandemic Recovery: Developing Domestic Sovereign Debt Markets in Central America, (USA: International Monetary Fund, 2021) 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

The pandemic has urged countries around the globe to mobilize financing to support the recovery. This is even more relevant in Central America, where the policy response to cushion the pandemic’s economic and social impact has accentuated pre-existing debt vulnerabilities. This paper documents the potential for local currency bond markets to diversify and expand financing for the recovery, lowering bond yields, funding volatility, and exposure to global shocks. The paper further identifies priority actions, both national and regional, to support market development.

Subject: Financial institutions, Financial markets, Financial services, Government debt management, Government securities, Public debt, Public financial management (PFM), Securities markets, Yield curve

Keywords: Bond Markets, Central America, Financing condition, Fiscal Deficit, Global, Global Spillovers., Government debt management, Government securities, LCBM development, Market development, Pre-existing debt vulnerability, Public Debt, Securities markets, Sovereign bond bond yield, Yield curve

Publication Details

Pages:

34
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2021/283
Stock No:

WPIEA2021283
ISBN:

9781616357061
ISSN:

1018-5941

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