## Domestic Debt Markets in Sub-Saharan Africa

_IMF Working Papers, March 1, 2004_

## Source details

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## Bibliographic details
- Authors: Jakob E Christensen
- Published: March 1, 2004
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9781451846584.001

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### Scope and dataset
- Study covers 27 SSA countries during the 20-year period 1980-2000.
- Publication: IMF Working Papers, Working Paper No. 2004/046, Issue 046, Volume 2004.
- Pages: 23
- DOI: https://doi.org/10.5089/9781451846584.001
- ISBN: 9781451846584
- ISSN: 1018-5941
- Author: Jakob E Christensen
- Publication date: March 1, 2004

### Key findings
- Domestic debt markets in these countries are generally small.
- Domestic debt markets are highly short-term in nature.
- Domestic debt markets often have a narrow investor base.
- Domestic interest payments present a significant burden to the budget, despite much smaller domestic than foreign indebtedness.
- The use of domestic debt is found to have significantly crowded out private sector lending.
- Significant differences exist between the size, cost, and maturity structure of domestic debt markets in HIPCs and non-HIPCs.

### Thematic coverage (subjects and keywords)
- Subjects: Domestic debt, External debt, Financial markets, Government debt management, Interest payments, Public debt, Public financial management (PFM), Securities markets
- Keywords: Africa; crowding out; debt; debt market; debt portfolio; debt problem; debt reduction scheme; debt stock; debt sustainability; Domestic debt; extent HIPCs; Government debt management; HIPCs; interest burden; interest cost; Interest payments; investor base; longer-term debt portfolio; maturity structure; Securities markets; short-term debt; sub-Saharan Africa; treasury bill; treasury bill interest rates; WP

### Summary conclusions relevant for policy and research
- Domestic debt markets’ small size, short maturities, and narrow investor bases are central constraints for government debt management in SSA.
- High domestic interest payments, relative to domestic indebtedness levels, imply fiscal strain that warrants attention in public financial management.
- Crowding out of private sector lending by public domestic borrowing indicates a trade-off between financing the public sector and supporting private-sector credit development.
- Differing market characteristics between HIPCs and non-HIPCs suggest tailored approaches are needed for debt market development and debt management strategies.

*Domestic Debt Markets in Sub-Saharan Africa, IMF Working Papers 2004, 046 (2004).*

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_Source: https://www.imf.org/en/publications/wp/issues/2016/12/30/domestic-debt-markets-in-sub-saharan-africa-17185_