Description: Small States : Performance in Public Debt Management

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Small States : Performance in Public Debt Management

This paper analyzes the status of public debt management performance in 17 small states through the findings of the Debt Management Performance Assessment reports. Empirical evidence indicates that the higher the quality of a country's polici...

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Bibliographic Details
Main Authors:	Prasad, Abha, Pollock, Malvina, Li, Ying
Language:	English en_US
Published:	World Bank, Washington, DC 2013
Subjects:	ACCOUNTING ACCOUNTING STANDARDS ACTIVE DEBT AGGREGATE DEBT ASPECTS OF DEBT MANAGEMENT ASSET PRICE AUCTION AUCTIONS BALANCE SHEET BANK FINANCING BENCHMARK BONDS BENEFICIARIES BID BOND BOND MARKETS BORROWING COSTS BORROWING PLAN BORROWING PLANS BROKER BROKERS BUYBACK CAPACITY CONSTRAINTS CAPITAL ADEQUACY CAPITAL FLOWS CAPITAL INVESTMENT CAPITAL MARKET CASH BALANCE CASH FLOW CASH FLOWS CENTRAL BANK CENTRAL BANKS CENTRAL GOVERNMENT DEBT COMMERCIAL BANKS COMMODITY PRICES CONTINGENT LIABILITIES COUPONS CREDITWORTHINESS CURRENCY CURRENCY RISKS CURRENT ACCOUNT CURRENT ACCOUNT DEFICITS DEBT ACCUMULATION DEBT BURDENS DEBT COMPOSITION DEBT CRISES DEBT DATA DEBT DYNAMICS DEBT FORGIVENESS DEBT ISSUES DEBT LEVELS DEBT MANAGEMENT CAPACITY DEBT MANAGEMENT POLICIES DEBT MANAGEMENT PRACTICES DEBT MANAGERS DEBT MARKET DEBT OBLIGATIONS DEBT PORTFOLIOS DEBT PROBLEM DEBT PROBLEMS DEBT RATIOS DEBT RELIEF DEBT REPORTS DEBT RESTRUCTURING DEBT SERVICE DEBT SERVICE OBLIGATIONS DEBT SERVICE PAYMENTS DEBT TRANSACTIONS DEBT-SERVICE DEBTOR DEBTOR REPORTING SYSTEM DEVELOPING COUNTRIES DOMESTIC BORROWING DOMESTIC BORROWINGS DOMESTIC DEBT DOMESTIC DEBT MARKETS DOMESTIC MARKET DOMESTIC MARKETS DOMESTIC SECURITY ENABLING ENVIRONMENT ENFORCEMENT MECHANISMS EXCESS LIQUIDITY EXCESSIVE BORROWING EXPENDITURES EXTERNAL BORROWING EXTERNAL DEBT EXTERNAL DEBT INDICATORS EXTERNAL FINANCING EXTERNAL INDEBTEDNESS EXTERNAL PUBLIC DEBT FINANCIAL CRISIS FINANCIAL INSTABILITY FINANCIAL INSTITUTIONS FINANCIAL MARKET FISCAL DEFICITS FISCAL POLICIES FISCAL POLICY FIXED EXCHANGE RATE FIXED INCOME FIXED INCOME SECURITIES FOREIGN CURRENCY FOREIGN INVESTMENT FOREIGN MARKETS FUNGIBLE GLOBAL ECONOMY GOVERNMENT FINANCING GOVERNMENT SECURITIES GOVERNMENT SECURITY GROSS DOMESTIC PRODUCT HOLDING HUMAN RESOURCE INCOME LEVEL INCOME LEVELS INCOME VOLATILITY INDEBTEDNESS INFLATION INFORMATION TECHNOLOGY INSTITUTIONAL ARRANGEMENTS FOR DEBT MANAGEMENT INSTITUTIONAL CAPACITY INSTITUTIONAL INVESTORS INSTRUMENT INSURANCE INSURANCE COMPANIES INTEREST RATE INTEREST RATE SWAPS INTERNATIONAL BANK INTERNATIONAL DEBT INVESTMENT PROJECTS INVESTOR BASE INVESTOR DEMAND ISSUANCE LEGAL FRAMEWORK LEGAL FRAMEWORKS LEGAL SYSTEM LEVEL PLAYING FIELD LIQUID BENCHMARK LIQUID DOMESTIC DEBT MARKETS LOAN LOAN CONTRACT LOAN GUARANTEES LOCAL CURRENCIES LOCAL CURRENCY LOCAL SECURITIES LONG-TERM INVESTORS LONG-TERM LIABILITIES MACROECONOMIC MANAGEMENT MACROECONOMIC POLICIES MARKET DATA MARKET DEPTH MARKET DEVELOPMENT MARKET DISCIPLINE MARKET MAKERS MARKET PARTICIPANTS MATURITIES MATURITY MEASUREMENT OF DEBT MONETARY FUND MONETARY POLICIES MONETARY POLICY NATIONAL DEBT NATIONAL DEBT MANAGEMENT NATURAL DISASTER NATURAL DISASTERS NET PRESENT VALUE OF DEBT OPEN ECONOMIES OUTSTANDING DEBT PENSION PENSION FUND PENSION FUNDS POLITICAL STABILITY PORTFOLIO PORTFOLIO RISK PORTFOLIOS POTENTIAL INVESTORS PRIMARY MARKET PRIVATE CREDITORS PUBLIC BORROWING PUBLIC DEBT PUBLIC DEBT MANAGEMENT PUBLIC FINANCE PUBLIC FINANCES PUBLIC SECTOR DEBT PUBLIC SECTOR DEFICITS PURCHASING POWER QUALITY OF DEBT MANAGEMENT REGISTRY SYSTEM REGULATORY FRAMEWORK REGULATORY INFRASTRUCTURE REMITTANCE RESERVE RESERVES RETAIL INVESTORS RISK FACTORS RISK MANAGEMENT SECONDARY MARKET SECONDARY MARKETS SECONDARY TRADING SECURITIES EXCHANGE SECURITY MARKET SETTLEMENT SETTLEMENT SYSTEM SETTLEMENT SYSTEMS SOVEREIGN DEBT SUBSTANTIAL DEBT T-BONDS TAX TOTAL DEBT TRADING TRANSACTION TRANSACTION COSTS TRANSPARENCY TREASURY TREASURY BILLS TREASURY BONDS TREASURY NOTES TURNOVER UNIFORM PRICE UNIFORM PRICE AUCTION USE OF DERIVATIVES YIELD CURVE ZERO COUPON
Online Access:	http://documents.worldbank.org/curated/en/2013/02/17225559/small-states-performance-public-debt-management http://hdl.handle.net/10986/13165

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Summary:	This paper analyzes the status of public debt management performance in 17 small states through the findings of the Debt Management Performance Assessment reports. Empirical evidence indicates that the higher the quality of a country's policies and institutions, the better is its capacity to carry debt and withstand exogenous shocks. Borrowing for productive purposes can be an important element in boosting growth of gross domestic product but, conversely, excessive borrowing or poorly structured debt in terms of maturity, currency, or interest rate composition can quickly offset the positive impact, deter new foreign and domestic investment, compromise reform programs, depress growth of gross domestic product, exacerbate the challenge of meeting debt service obligations, and may induce or propagate economic crises. Arguments in favor of sound debt management are especially compelling for small states that must mitigate the particular risks to which their economies are exposed. Against this backdrop, the paper identifies aspects of debt management where small states do relatively well and those where they perform poorly, relative to other developing countries, and examines the underlying factors at play. It elaborates on some of the successful measures taken by small states to enhance debt management performance and considers how these may be applied more broadly in other small states. The paper offers a number of practical suggestions to strengthen debt management performance.