Financing Growth in the WAEMU Through the Regional Securities Market: Past Successes and Current Challenges

ByMame Astou Diouf, Francois Boutin-Dufresne

October 18, 2012

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

The West African Economic and Monetary Union (WAEMU) regional securities market saw increasing activity in the last decade, but still fell short of supplying sufficient long-term financing for growth-enhancing public and private investment projects. In addition to providing an institutional background, this paper studies recent developments and the determinants of interest rates on the market—using yield curve and principal component analyses. It also identifies challenges and prospective reforms that could help the region reap the full benefits of a more dynamic securities market and assesses the potential systemic risk the market may pose for the region’s banking system.

Subject: Bonds, Financial institutions, Financial markets, Government securities, Securities, Securities markets, Treasury bills and bonds

Keywords: bond market, Bonds, coverage rate, debt, determinants of interest rates, financial market, financing growth, government securities, Government securities, interest rate, interest rates spread, issuance procedure, market, market operation, principal component analysis, regional securities market, Securities, Securities markets, securities shallow, sovereign debt rating, T-bill, T-bill issue, T-bill market, T-bond, T-bond auction, Treasury bills and bonds, WAEMU, WAEMU securities market, West Africa, WP, yield curve

Pages:
22
Volume:
2012
DOI:
https://doi.org/10.5089/9781475548204.001
Issue:
249
Series:
Working Paper No. 2012/249
Stock No:
WPIEA2012249
ISBN:
9781475548204
ISSN:
1018-5941

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