Financing for the Post-pandemic Recovery: Developing Domestic Sovereign Debt Markets in Central America

Author/Editor:

Jean François Clevy ; Guilherme Pedras ; . Esther Perez Ruiz

Publication Date:

December 3, 2021

Electronic Access:

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Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

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. This 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 further identifies priority actions, both national and regional, to support market development.

Series:

Working Paper No. 2021/283

Subject:

Frequency:

regular

English

Publication Date:

December 3, 2021

ISBN/ISSN:

9781616357061/1018-5941

Stock No:

WPIEA2021283

Pages:

34

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