Equity and Private Debt Markets in Central America, Panama, and the Dominican Republic
International Monetary Fund Working Paper No. WP/07/2008
132 Pages Posted: 20 Dec 2007
Date Written: December 19, 2007
This study focuses on equity, private debt, and asset-backed securities markets in Central America. These markets are generally under-developed throughout the region due to several structural problems, economic and political factors, and weaknesses in regulation and in institutional investor base. The paper identifies key country-specific recommendations to strengthen securities laws, regulatory oversight, market infrastructure, investor base, and new products such as asset-backed securities. Despite these efforts, developing seven viable private capital markets is a difficult goal. The paper thus also explores the benefits and difficulties of creating a single capital market in a region still short of full economic integration.
Keywords: Central America, equity, debt, securitization, financial integration, capital market development, securities regulation, Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua, Panama
JEL Classification: G21, G23, G28, K22, N26
Suggested Citation: Suggested Citation