Domestic Debt Markets in Sub-Saharan Africa

Author/Editor:

Jakob E Christensen

Publication Date:

March 1, 2004

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

This study discusses the role of domestic debt markets in sub-Saharan Africa (SSA) based on a new dataset covering 27 SSA countries during the 20-year period 1980-2000. The study finds that domestic debt markets in these countries are generally small, highly short-term in nature, and 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 also found to have significantly crowded out private sector lending. Finally, the study identifies significant differences between the size, cost, and maturity structure of domestic debt markets in HIPCs and non-HIPCs.

Series:

Working Paper No. 2004/046

Subject:

Domestic debt External debt Financial markets Government debt management Interest payments Public debt Public financial management (PFM) Securities markets

English

Publication Date:

March 1, 2004

ISBN/ISSN:

9781451846584/1018-5941

Stock No:

WPIEA0462004

Pages:

23

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