{
  "title": "Local Currency Bond Markets Law Reform: A Methodology for Emerging Markets and Developing Economies",
  "publication": "IMF Working Papers, November 20, 2020",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2020/11/20/local-currency-bond-markets-law-reform-a-methodology-for-emerging-markets-and-developing-49905",
  "canonical": "https://www.imf.org/en/publications/wp/issues/2020/11/20/local-currency-bond-markets-law-reform-a-methodology-for-emerging-markets-and-developing-49905",
  "overlayPath": "/en/publications/wp/issues/2020/11/20/local-currency-bond-markets-law-reform-a-methodology-for-emerging-markets-and-developing-49905/index.md",
  "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.",
  "sections": [
    {
      "heading": "Summary",
      "content": "- Authors: Wouter Bossu, Cory Hillier, Wolfgang Bergthaler\n- Publication date: November 20, 2020\n- Core objective: Outline a strategically anchored methodology to design, build and implement the legal and tax foundations for the development of local currency bond markets (LCBMs) in emerging markets and developing economies.\n- Rationale:\n  - Recent financial crises including the ongoing one caused by the COVID-19 pandemic have highlighted the need to strengthen public debt management in emerging markets and developing countries.\n  - 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.\n  - Robust legal and regulatory frameworks are recognized as critical building blocks for the structure, development and functioning of LCBMs."
    },
    {
      "heading": "Key findings and themes",
      "content": "- Importance of LCBMs:\n  - Developing and strengthening LCBMs is a key policy prescription to sound public debt management.\n- Role of legal and tax frameworks:\n  - Legal and tax foundations are essential to address common challenges and impediments to LCBM development.\n- Target outcomes:\n  - Reduce financial vulnerability to shocks.\n  - Enable governments to finance critical economic and fiscal policy measures."
    },
    {
      "heading": "Methodology focus",
      "content": "- Aim: Provide a methodology applicable to emerging markets and developing economies to:\n  - Design legal and tax frameworks.\n  - Build institutional foundations.\n  - Implement reforms to support LCBM development.\n- Strategic anchoring: The methodology is framed to adequately address common challenges and impediments specific to LCBMs in the target economies."
    },
    {
      "heading": "Policy implications and recommendations (as emphasized)",
      "content": "- Strengthen public debt management through deeper domestic government debt markets.\n- Prioritize robust legal and regulatory frameworks as critical building blocks for LCBM development.\n- Align legal and tax reforms with the strategic objective of reducing financial vulnerability and enabling government financing capacity during shocks.\n\n---\n\n Content in this bundle\n\n- Working Paper\n  - Working Paper (Markdown version){rel=\"alternate\" type=\"text/markdown\"}\n  - Working Paper (PDF){rel=\"external\" type=\"application/pdf\"}\n\n---\n\nSource: https://www.imf.org/en/publications/wp/issues/2020/11/20/local-currency-bond-markets-law-reform-a-methodology-for-emerging-markets-and-developing-49905"
    }
  ],
  "bullets": [
    "[Markdown version](/en/publications/wp/issues/2020/11/20/local-currency-bond-markets-law-reform-a-methodology-for-emerging-markets-and-developing-49905/index.md)",
    "[Structured JSON version](/en/publications/wp/issues/2020/11/20/local-currency-bond-markets-law-reform-a-methodology-for-emerging-markets-and-developing-49905/index.json)",
    "[Bundle manifest](/en/publications/wp/issues/2020/11/20/local-currency-bond-markets-law-reform-a-methodology-for-emerging-markets-and-developing-49905/bundle-manifest.json)",
    "Authors: Wouter Bossu, Cory Hillier, Wolfgang Bergthaler",
    "Published: November 20, 2020",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781513561608.001",
    "Authors: Wouter Bossu, Cory Hillier, Wolfgang Bergthaler",
    "Publication date: November 20, 2020",
    "Core objective: Outline a strategically anchored methodology to design, build and implement the legal and tax foundations for the development of local currency bond markets (LCBMs) in emerging markets and developing economies.",
    "Rationale:",
    "Importance of LCBMs:",
    "Role of legal and tax frameworks:",
    "Target outcomes:",
    "Aim: Provide a methodology applicable to emerging markets and developing economies to:",
    "Strategic anchoring: The methodology is framed to adequately address common challenges and impediments specific to LCBMs in the target economies.",
    "Strengthen public debt management through deeper domestic government debt markets.",
    "Prioritize robust legal and regulatory frameworks as critical building blocks for LCBM development.",
    "Align legal and tax reforms with the strategic objective of reducing financial vulnerability and enabling government financing capacity during shocks.",
    "**Working Paper**"
  ],
  "related": [
    {
      "title": "Working Paper",
      "role": "paper",
      "sourceUrl": "https://www.imf.org/-/media/files/publications/wp/2020/english/wpiea2020258-print-pdf.pdf",
      "summary": {
        "path": "/-/media/files/publications/wp/2020/english/wpiea2020258-print-pdf.pdf.md",
        "mime": "text/markdown"
      },
      "binary": {
        "path": "/-/media/files/publications/wp/2020/english/wpiea2020258-print-pdf.pdf",
        "mime": "application/pdf"
      }
    }
  ],
  "alternates": {
    "markdown": "/en/publications/wp/issues/2020/11/20/local-currency-bond-markets-law-reform-a-methodology-for-emerging-markets-and-developing-49905/index.md",
    "json": "/en/publications/wp/issues/2020/11/20/local-currency-bond-markets-law-reform-a-methodology-for-emerging-markets-and-developing-49905/index.json",
    "bundleManifest": "/en/publications/wp/issues/2020/11/20/local-currency-bond-markets-law-reform-a-methodology-for-emerging-markets-and-developing-49905/bundle-manifest.json"
  },
  "generatedAtUtc": "2026-09-16T18:33:15.070Z"
}