The Effects of Data Transparency Policy Reforms on Emerging Market Sovereign Bond Spreads
The Effects of Data Transparency Policy Reforms on Emerging Market Sovereign Bond Spreads

Author: Sangyup Choi

Publisher: International Monetary Fund

Published: 2017-03-28

Total Pages: 33

ISBN-13: 1475589603

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We find that data transparency policy reforms, reflected in subscriptions to the IMF’s Data Standards Initiatives (SDDS and GDDS), reduce the spreads of emerging market sovereign bonds. To overcome endogeneity issues regarding a country’s decision to adopt such reforms, we first show that the reform decision is largely independent of its macroeconomic development. By using an event study, we find that subscriptions to the SDDS or GDDS leads to a 15 percent reduction in the spreads one year following such reforms. This finding is robust to various sensitivity tests, including careful consideration of the interdependence among the structural reforms.

Is Transparency Good for You, and Can the IMF Help?
Is Transparency Good for You, and Can the IMF Help?

Author: Yongseok Shin

Publisher: International Monetary Fund

Published: 2003-06-01

Total Pages: 48

ISBN-13: 1451855400

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This paper finds that reforms introduced by the IMF to promote transparency have created more informed markets and reduced borrowing costs for those emerging market countries that volunteered for them. Using a quarterly panel estimation with fixed country effects, we find that sovereign spreads fall following the adoption of three different transparency reforms. The effects are economically important, especially for those countries with low initial transparency. We use two-stage least squares to address any endogeneity in the timing of reforms exploiting internal IMF timetables that are unrelated to country events. Next, using a panel GARCH specification, we show that spreads move more than normal in the days immediately following publication of IMF country documents.

Fiscal Transparency, Borrowing Costs, and Foreign Holdings of Sovereign Debt
Fiscal Transparency, Borrowing Costs, and Foreign Holdings of Sovereign Debt

Author: Laurent Kemoe

Publisher: International Monetary Fund

Published: 2018-08-24

Total Pages: 33

ISBN-13: 1484374584

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This paper explores the effects of fiscal transparency on the borrowing costs of 33 emerging and developing economies (EMs), and on foreign demand for their sovereign debt. Using multiple indicators, including a constructed one based on the published data in the IMF’s Government Finance Statistics Yearbook, we measure the separate effects of the three dimensions of fiscal transparency: openness of the budget process, fiscal data transparency, and accountability of fiscal actors. The results suggest that higher fiscal transparency reduces sovereign interest rate spreads and increases foreign holdings of sovereign debt, with each dimension of fiscal transparency playing a different role. Availability of detailed cross-country comparable fiscal data, especially for balance sheet items, has shown to increase foreign investors’ willingness in holding EM sovereign debt.

Improving Fiscal Transparency to Raise Government Efficiency and Reduce Corruption Vulnerabilities in Central, Eastern, and Southeastern Europe
Improving Fiscal Transparency to Raise Government Efficiency and Reduce Corruption Vulnerabilities in Central, Eastern, and Southeastern Europe

Author: Mr.Bernardin Akitoby

Publisher: International Monetary Fund

Published: 2020-05-11

Total Pages: 66

ISBN-13: 1513532839

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This departmental paper investigates how countries in Central, Eastern, and Southeastern Europe (CESEE) can improve fiscal transparency, thereby raising government efficiency and reducing corruption vulnerabilities.

The Sustainability of Asia’s Debt
The Sustainability of Asia’s Debt

Author: Ferrarini, Benno

Publisher: Edward Elgar Publishing

Published: 2022-02-22

Total Pages: 456

ISBN-13: 1800883722

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This is an open access title available under the terms of a [CC BY 3.0 IGO] License. It is free to read, download and share on Elgaronline.com. Asia has shown the world what success in economic development looks like. From the amazing transformations of Japan, the Republic of Korea, and the other ‘tigers’ in the early 70s, to the more recent takeoffs of the People’s Republic of China (PRC), India, and the leading economies in Southeast Asia, the region has prospered at a startling pace. Technologies were adopted, productivity raised, and export markets conquered. Billions were lifted out of poverty. What was once a backwater is now a global engine of growth.

Determinants of Sovereign Bond Spreads in Emerging Markets
Determinants of Sovereign Bond Spreads in Emerging Markets

Author: Mr.Balazs Csonto

Publisher: International Monetary Fund

Published: 2013-07-10

Total Pages: 42

ISBN-13: 1484361482

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We analyze the relationship between global and country-specific factors and emerging market debt spreads from three different angles. First, we aim to disentangle the effect of global and country-specific developments, and find that while both country-specific and global developments are important in the long-run, global factors are main determinants of spreads in the short-run. Second, we investigate whether and how the strength of fundamentals is related to the sensitivity of spreads to global factors. Countries with stronger fundamentals tend to have lower sensitivity to changes in global risk aversion. Third, we decompose changes in spreads and analyze the behavior of explained and unexplained components over different periods. To do so, we break down fitted changes in spreads into the contribution of country-specific and global factors, as well as decompose changes in the residual into the correction of initial misalignment and an increase/decrease in misalignment. We find that changes in spreads follow periods of tightening/widening, which are well-explained by the model; and the dynamics of the components of the unexplained residual follow all the major developments that impact market sentiment. In particular, we find that in the periods of severe marketstress, such as during the intensive phase of the Eurozone debt crisis, global factors tend to drive changes in the spreads and the misalignment tends to increase in magnitude and its relative share in actual spreads.

IMF Research Bulletin, Summer 2017
IMF Research Bulletin, Summer 2017

Author: International Monetary Fund. Research Dept.

Publisher: International Monetary Fund

Published: 2017-08-11

Total Pages: 19

ISBN-13: 1484315448

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The Summer 2017 issue of the IMF Research Bulletin highlights new research such as recent IMF Working Papers and Staff Discussion Notes. The Research Summaries are “Structural Reform Packages, Sequencing, and the Informal Economy (by Zsuzsa Munkacsi and Magnus Saxegaard) and “A Broken Social Contract, Not High Inequality Led to the Arab Spring” (by Shantayanan Devarajan and Elena Ianchovichina). The Q&A section features “Seven Questions on Fintech” (by Tommaso Mancini-Griffoli). The Bulletin also includes information on recommended titles from IMF Publications and the latest articles from the IMF Economic Review.

Opportunity for All
Opportunity for All

Author: MissCatriona Purfield

Publisher: International Monetary Fund

Published: 2018-07-12

Total Pages: 123

ISBN-13: 1484361172

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This publication brings together a set of IMF papers that prepared as backgrounds for the various sessions of the conference and will help put into broader dissemination channels the results of this important conference. An official IMF publication is well disseminated into academic and institutional libraries and book channels. The IMF metadata will also make the conference papers more discoverable online.

Reform of the Policy on Public Debt Limits in IMF-Supported Programs
Reform of the Policy on Public Debt Limits in IMF-Supported Programs

Author: International Monetary Fund. Strategy, Policy, & Review Department

Publisher: International Monetary Fund

Published: 2020-11-11

Total Pages: 67

ISBN-13: 1513560883

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This paper evaluates the IMF’s policy on the use of quantitative limits on public debt in IMF-supported programs (the “debt limits policy”) and proposes a number of modifications. The review is taking place at a time when many countries are experiencing heightened debt vulnerabilities or actual debt distress, aggravated by the COVID-19 shock, and occurring against the backdrop of a changing credit landscape in which concessional finance is scarcer relative to countries’ investment needs.

Guidance Note For Developing Government Local Currency Bond Markets
Guidance Note For Developing Government Local Currency Bond Markets

Author: International Monetary Fund

Publisher: International Monetary Fund

Published: 2021-03-12

Total Pages: 157

ISBN-13: 1513573926

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This guidance note was prepared by International Monetary Fund (IMF) and World Bank Group staff under a project undertaken with the support of grants from the Financial Sector Reform and Strengthening Initiative, (FIRST).The aim of the project was to deliver a report that provides emerging market and developing economies with guidance and a roadmap in developing their local currency bond markets (LCBMs). This note will also inform technical assistance missions in advising authorities on the formulation of policies to deepen LCBMs.