{
  "title": "Financing for the Post-pandemic Recovery: Developing Domestic Sovereign Debt Markets in Central America",
  "publication": "IMF Working Papers, December 3, 2021",
  "sourceUrl": "https://www.imf.org/en/publications/wp/issues/2021/12/03/financing-for-the-post-pandemic-recovery-developing-domestic-sovereign-debt-markets-in-510783",
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  "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.",
  "sections": [
    {
      "heading": "Summary",
      "content": "- The pandemic has urged countries around the globe to mobilize financing to support the recovery.\n- Central America faces heightened relevance of mobilizing financing because the policy response to cushion the pandemic’s economic and social impact has accentuated pre-existing debt vulnerabilities.\n- The 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.\n- The paper identifies priority actions, both national and regional, to support market development."
    },
    {
      "heading": "Key findings",
      "content": "- Local currency bond markets can:\n  - Diversify and expand financing available for the post-pandemic recovery.\n  - Lower bond yields.\n  - Reduce funding volatility.\n  - Decrease exposure to global shocks.\n- The context in Central America: pandemic-related policy responses have accentuated pre-existing debt vulnerabilities."
    },
    {
      "heading": "Priority actions and policy implications",
      "content": "- The paper identifies priority actions at both national and regional levels to support development of local currency bond markets (LCBM development).\n- Relevant thematic areas for policy action include:\n  - Government debt management and government securities.\n  - Public debt and public financial management (PFM).\n  - Financial institutions, financial markets, financial services, and securities markets.\n  - Yield curve development and sovereign bond yield management.\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/2021/12/03/financing-for-the-post-pandemic-recovery-developing-domestic-sovereign-debt-markets-in-510783"
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    "Authors: Jean François Clevy, Guilherme Pedras, Esther Perez Ruiz",
    "Published: December 3, 2021",
    "Series: IMF Working Papers",
    "DOI: https://doi.org/10.5089/9781616357061.001",
    "The pandemic has urged countries around the globe to mobilize financing to support the recovery.",
    "Central America faces heightened relevance of mobilizing financing because the policy response to cushion the pandemic’s economic and social impact has accentuated pre-existing debt vulnerabilities.",
    "The 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 identifies priority actions, both national and regional, to support market development.",
    "Local currency bond markets can:",
    "The context in Central America: pandemic-related policy responses have accentuated pre-existing debt vulnerabilities.",
    "The paper identifies priority actions at both national and regional levels to support development of local currency bond markets (LCBM development).",
    "Relevant thematic areas for policy action include:",
    "**Working Paper**"
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