1. Sovereign Debt Management in Crisis in Europe and Central Asia : A Toolkit for Policy Maker
- Author
-
World Bank
- Subjects
RETAIL INVESTORS ,DEBT PAPER ,EMERGING MARKET COUNTRIES ,GOVERNMENT SECURITIES MARKETS ,PENSION FUNDS ,SETTLEMENT SYSTEMS ,MARKETABLE INSTRUMENTS ,INFLATIONARY PRESSURES ,MARKET BORROWING ,INFLATION ,EMERGING MARKET ,FISCAL DEFICIT ,REVERSE AUCTIONS ,T-BONDS ,GOVERNMENT BORROWING ,CONSUMER PRICE INDEX ,PENSION ,FINANCIAL MARKET ,MARKET ENVIRONMENT ,SOVEREIGN DEBT MARKET ,CREDIT LINES ,MARKET INSTRUMENTS ,FINANCIAL SYSTEMS ,FOREIGN CURRENCY LOANS ,WITHDRAWAL ,LIQUID INSTRUMENTS ,TRANSPARENCY ,SHORT-TERM INSTRUMENTS ,EMERGING MARKETS ,MORTGAGE ,FINANCIAL MARKETS ,WHOLESALE INVESTOR ,SHORT-TERM DEBT ,INSTITUTIONAL INVESTORS ,LIQUIDITY POSITION ,SOVEREIGN DEBT ,DEPOSITS ,BORROWING COSTS ,CREDITORS ,AUCTION ,BANK DEPOSITS ,DOMESTIC MARKETS ,DEVALUATION ,FIXED INCOME ,EXCESS SUPPLY ,DEBT POLICY ,MONETARY POLICY ,DISBURSEMENT ,LIQUIDITY ,INTEREST RATES ,PUBLIC DEBT ,CREDIT RISK ,CONTINGENT LIABILITIES ,CASH MANAGEMENT ,INVESTOR BASE ,AUCTIONS ,FIXED INCOME MARKETS ,PORTFOLIO RISK ,BUDGET DEFICIT ,PRIMARY DEALER ,LOCAL MARKET ,LIQUIDITY RISKS ,ISSUANCE OF T-BILLS ,DISBURSEMENTS ,DEBT OUTSTANDING ,DEBT BUYBACK ,PORTFOLIO ,LENDERS ,REPAYMENT SCHEDULE ,GOVERNMENT REVENUES ,FOREIGN MARKETS ,MARKET PARTICIPANTS ,MARKET SIZE ,DOMESTIC BORROWING ,CAPITAL MARKETS ,SECURITIES MARKETS ,BILATERAL TRANSACTIONS ,REGULATORY FRAMEWORK ,FISCAL POLICY ,SECONDARY MARKET ,LIABILITY ,DEVELOPING GOVERNMENT BOND MARKETS ,FINANCIAL INSTITUTIONS ,SECONDARY MARKET TRANSACTIONS ,BORROWING REQUIREMENTS ,RETAIL DEBT ,ISLAMIC INVESTORS ,GOVERNMENT SECURITIES ,INDEXED BONDS ,EXTERNAL BORROWING ,DEBT FINANCING ,LOAN ,DEBT CRISIS ,RISK PROFILE ,REINVESTMENT ,BOND ISSUANCE ,DEVELOPING COUNTRIES ,MATURITY ,SECURITIES ,CREDIT RATING ,PUBLIC DEBT MANAGEMENT ,LIABILITY MANAGEMENT ,CENTRAL BANKS ,EMERGING MARKET ECONOMIES ,REPAYMENT ,ISSUANCE ,CURRENT ACCOUNT DEFICITS ,TRADING ,FINANCIAL SAVINGS ,BUDGETING ,LOCAL CURRENCY ,SECONDARY MARKET ACTIVITY ,FINANCIAL FLOWS ,INTERNATIONAL CAPITAL ,GOVERNMENT PAPER ,MARKET ACCESS ,CAPITAL FLOWS ,BANKING SYSTEM ,INVENTORY ,FOREIGN EXCHANGE RISKS ,DEBT ISSUANCE ,DEBT MANAGEMENT POLICIES ,CASH BALANCES ,GOVERNMENT DEBT ,LOAN AGREEMENT ,INTERNATIONAL CAPITAL MARKETS ,MATURITIES ,DOMESTIC MARKET ,PUBLIC BUDGETS ,EXCESS LIQUIDITY ,RISK AVERSION ,BANK LENDING ,INSTRUMENT ,DOMESTIC CAPITAL ,FINANCIAL CRISIS ,FOREIGN INTEREST ,BALANCE SHEETS ,GOVERNMENT BONDS ,CRISIS LENDING ,RESERVES ,OPPORTUNITY COST ,CURRENCY COMPOSITION ,SETTLEMENT ,SECONDARY MARKETS ,DOMESTIC DEBT MARKETS ,BORROWER ,ASSET PRICES ,PRIMARY DEALERS ,INTERNATIONAL MARKETS ,DEVELOPING GOVERNMENT BOND ,EXTERNAL DEBT ,INTERNATIONAL BOND ,SHORT-TERM BONDS ,STRATEGIC DEBT MANAGEMENT ,DEBT INSTRUMENTS ,T-BILLS ,BORROWING PLAN ,DEBT PAYMENTS ,PRIMARY DEALER SYSTEMS ,CREDIT LINE ,BANKING SECTOR ,CRISIS COUNTRIES ,LIQUID SECONDARY MARKET ,CENTRAL BANK ,MONETARY POLICIES ,RETURN ,LONG-TERM DEBT ,MARKET ENVIRONMENTS ,WHOLESALE INVESTORS ,DOMESTIC DEBT ,PRIMARY MARKET ,CAPITAL MARKET ,GOVERNMENT SUPPORT ,DATED SECURITIES ,CREDIBILITY ,MACROECONOMIC MANAGEMENT ,DEBT ISSUANCES ,FOREIGN EXCHANGE ,ACCOUNTING ,PORTFOLIOS ,FINANCES ,RETAIL GOVERNMENT SECURITIES ,DEBT MARKET DEVELOPMENT ,MARKET DEVELOPMENT ,LOCAL MARKETS ,MARKET MAKING ,PRICE DISCOVERY ,CURRENCY RISK ,LIQUID MARKET ,BENCHMARK BONDS ,INTERNATIONAL FINANCIAL INSTITUTIONS ,INSURANCE ,PRIMARY MARKETS ,TREASURY ,MARKET INTEREST RATES ,PRICE VOLATILITY ,DOMESTIC BANKS ,DEBT MANAGEMENT ,MACROECONOMIC POLICY ,COMMERCIAL BANKS ,INTERNATIONAL BANK ,INVESTOR DEMAND ,DEBT SERVICING ,MONETARY FUND ,PORTFOLIO RISK MANAGEMENT ,LEGAL FRAMEWORK ,DOMESTIC CAPITAL MARKETS ,MEDIUM TERM SECURITIES ,CAPITAL INFLOWS ,FOREIGN CURRENCY ,INTEREST RATE ,LEVEL PLAYING FIELD ,YIELD CURVE ,CAPITAL CONSTRAINTS ,DEBT MATURITIES ,ACTIVE MARKET ,BUYBACKS - Abstract
The global financial crisis of 2008-2009 required most sovereign debt managers to adapt to rapidly changing market circumstances, by changing the mix of borrowing instruments and adopting techniques that minimize the impact of severe market dislocations and increased risk aversion. These actions, allied to prudent macroeconomic and debt management policies implemented by government in the years preceding the crises, were critical in helping countries meet their financing needs without undue strain on the financial markets. This toolkit draws on the approaches taken by a range of countries and provides sovereign debt policy makers with a rich set of potential actions to address crisis periods. A practical illustration on the use of some of these actions is conducted by analyzing the measures taken by Romania, Serbia and Turkey as a response to the recent crises. Authors draw lessons from these experiences and examine what other measures included in the toolkit could have been used to boost the crisis response impact in these economies, respecting country-specific contexts.
- Published
- 2013