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

34 Pages Posted: 4 Feb 2022

See all articles by Jean François Clevy

Jean François Clevy

International Monetary Fund (IMF)

Guilherme B.V. Pedras

International Monetary Fund (IMF)

Esther Pérez Ruiz

International Monetary Fund (IMF)

Date Written: December 1, 2021

Abstract

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.

Keywords: Bond Markets, Fiscal Deficit, Public Debt, Global Spillovers.

JEL Classification: E44, E62, H63

Suggested Citation

François Clevy, Jean and Pedras, Guilherme B.V. and Pérez Ruiz, Esther, Financing for the Post-Pandemic Recovery: Developing Domestic Sovereign Debt Markets in Central America (December 1, 2021). IMF Working Paper No. 2021/283, Available at SSRN: https://ssrn.com/abstract=4026513

Jean François Clevy (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Guilherme B.V. Pedras

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

Esther Pérez Ruiz

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

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