Domestic Public Debt in Low-Income Countries: Trends and Structure

30 Pages Posted: 20 Apr 2016

See all articles by Juan Pradelli

Juan Pradelli

Consip SPA

Andrea Filippo Presbitero

Università Politecnica delle Marche - Department of Economics; Centre for Macroeconomics & Finance Research (CeMaFiR)

Giovanna Bua

University of Milan

Date Written: February 1, 2014

Abstract

This paper introduces a new data set on the stock and structure of domestic debt in 36 low-income countries over the period 1971-2011. It characterizes the recent trends regarding the do-mestic public debt of low-income countries and explores the relevance of different arguments put forward on the benefits and costs of government borrowing in local public debt markets. The main stylized fact emerging from the data is the increase in domestic government debt since 1996. It is also observed that poor countries have been able to increase the share of long-term in-struments over time and that maturity lengthening went together with a decrease in borrowing costs. However, the concentration of the investor base, mainly dominated by commercial banks and the central bank, may crowd out lending to the private sector.

Keywords: Debt Markets, External Debt, Emerging Markets, Bankruptcy and Resolution of Financial Distress, Banks & Banking Reform

Suggested Citation

Pradelli, Juan and Presbitero, Andrea Filippo and Bua, Giovanna, Domestic Public Debt in Low-Income Countries: Trends and Structure (February 1, 2014). World Bank Policy Research Working Paper No. 6777. Available at SSRN: https://ssrn.com/abstract=2394975

Juan Pradelli

Consip SPA ( email )

Direzione Acquisti in Rete della Pubblica Amminist
Via Isonzo, 19/E
00198 Roma
Italy

Andrea Filippo Presbitero

Università Politecnica delle Marche - Department of Economics ( email )

Piazzale Martelli, 8
Ancona, AN 60121
Italy
+39 0712207074 (Phone)

HOME PAGE: http://sites.google.com/site/presbitero/

Centre for Macroeconomics & Finance Research (CeMaFiR) ( email )

Piazza Mirabello, 2
Milan, 20100
Italy

Giovanna Bua

University of Milan ( email )

Via Festa del Perdono, 7
Milan, 20122
Italy

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