Enhancing Debt Transparency by Strengthening Public Debt Transaction Disclosure Practices
Improving debt transparency is critical for promoting debt sustainability and creditworthiness assessments, increasing the accuracy of public debt information, and protecting the interests of a diverse range of stakeholders. The importance of debt...
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| Language: | English |
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Washington, DC: World Bank
2022
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| Online Access: | http://documents.worldbank.org/curated/en/099851205022236961/IDU0f4d568b1041650496b0b781032d25e3316ee http://hdl.handle.net/10986/37420 |
| Summary: | Improving debt transparency is
critical for promoting debt sustainability and
creditworthiness assessments, increasing the accuracy of
public debt information, and protecting the interests of a
diverse range of stakeholders. The importance of debt
transparency, the costs associated with the lack of it, and
its benefits, are extensively discussed in recent World Bank
literature. One of the key factors that limits debt
transparency as it relates to public disclosure and the
sharing of public debt-related information, is
transaction-level confidentiality and disclosure practices.
Challenges to disclosure have become more evident during
recent debt distress among borrowing countries, and the
COVID-19 pandemic. The discussion in this paper reveals
issues that arise from confidentiality and disclosure
practices among lenders and borrowers; and highlights how
these issues cause information asymmetries and undermine the
interests of stakeholders. The paper concludes by proposing
concrete and actionable recommendations for the World Bank,
IMF and sovereigns. |
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