After a prolonged economic downturn in the early 1990s Georgia has succeeded in improving economic performance. The Government of Georgia undertook large-scale reforms that encouraged increased output growth.
... See More + Over the period 2003-2012 the Georgian economy grew at an average annual rate of 6.6 percent. Privatization, new simplified tax codes introduced in 2005 and 2010 which reduced the complexity and number of taxes, the cancellation of import duties on approximately 90 percent of goods, and an 88 percent reduction in the number of licenses for doing business resulted in increasing foreign investment inflows into the country. Large external public borrowing to finance energy imports during the first years of independence resulted in a quick accumulation of external debt stock, which exceeded 80 percent of Gross Domestic Product (GDP) by the end of 1994. As a result of strong performance in 1996-1998 when the country's economy grew at 10 percent annually on average, the external debt declined sharply to below 58 percent of GDP. However, depreciation of the Lari against the US dollar during the Russian crisis diminished these achievements. The declining of the debt-to-GDP ratio resumed in 2000. From June 17-26, 2013, a World Bank tea
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Debt and Creditworthiness Study 83769 AUG 01, 2013
Financial infrastructure broadly defined comprises the underlying foundation for a country's financial system. It includes all institutions, information, technologies, rules and standards that enable financial intermediation.
... See More + Poor financial infrastructure in many developing countries poses a considerable constraint upon financial institutions to expand their offering of financial services to underserved segments of the population and the economy. It also creates risks which can threaten the stability of the financial system as a whole. This report describes the nature of credit reporting elements which are crucial for understanding credit reporting and to ensuring that credit reporting systems are safe, efficient and reliable. It intends to provide an international agreed framework in the form of international standards for credit reporting systems' policy and oversight. The Principles for credit reporting are deliberately expressed in a general way to ensure that they can be useful in all countries and that they will be durable. These principles are not intended for use as a blueprint for the design or operation of any specific system, but rather suggest the key characteristics that should be satisfied by different systems and the infrastructure used to support them to achieve a stated common purpose, namely expanded access and coverage, fair conditions, and safe and efficient service for borrowers and lenders. Section two provides a brief overview of the market for credit information sharing and credit reporting activities and then analyzes in some detail the key considerations underlying credit reporting. Section three outlines the general principles and related roles. Section four proposes a framework for the effective oversight of credit reporting systems.
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Debt and Creditworthiness Study 70193 SEP 01, 2011
The book analyzes the success of Brazil's public debt management practices. Over the past 10 years, Brazil has strengthened these practices so impressively that in early 2008, with the threat of a strong financial crisis in the world ahead, the main rating agencies assigned Brazil the investment grade.
... See More + Despite the serious financial crisis that actually erupted in 2008, Brazil's credibility with domestic and international investors remains high. This book is organized into three parts: Part I, Understanding the Brazilian Public Debt; Origin and history of Brazil's public debt up to 1963, provides an historical and conceptual analysis of Brazil's public debt, exploring its main concepts and sustainability, and offering a view of its progress from its inception to the present. Part II, Managing the Brazilian Public Debt, describes all aspects of FPD management. Part III, The Public Debt Market in Brazil, describes how the public debt market operates in Brazil. It reviews recent developments and follows with the characteristics of public securities traditionally used to finance debt, along with their pricing schemes. Next, it describes the organization of Brazil's financial markets, the operation of primary and secondary debt markets, the expansion of the investor base over time and the main holders of government securities.
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Debt and Creditworthiness Study 70081 JAN 01, 2010
Ladeira De Medeiros,Otavio; Silva,Anderson Caputo; Oliveira de Carvalho,LenaDisclosed
The book analyzes the success of Brazil's public debt management practices. Over the past 10 years, Brazil has strengthened these practices so impressively that in early 2008, with the threat of a strong financial crisis in the world ahead, the main rating agencies assigned Brazil the investment grade.
... See More + Despite the serious financial crisis that actually erupted in 2008, Brazil's credibility with domestic and international investors remains high. This book is organized into three parts: Part I, Understanding the Brazilian Public Debt; Origin and history of Brazil's public debt up to 1963, provides an historical and conceptual analysis of Brazil's public debt, exploring its main concepts and sustainability, and offering a view of its progress from its inception to the present. Part II, Managing the Brazilian Public Debt, describes all aspects of FPD management. Part III, The Public Debt Market in Brazil, describes how the public debt market operates in Brazil. It reviews recent developments and follows with the characteristics of public securities traditionally used to finance debt, along with their pricing schemes. Next, it describes the organization of Brazil's financial markets, the operation of primary and secondary debt markets, the expansion of the investor base over time and the main holders of government securities.
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Debt and Creditworthiness Study 70081 JAN 01, 2010
Silva,Anderson Caputo; Ladeira De Medeiros,Otavio; Oliveira de Carvalho,LenaDisclosed
This report assesses Montenegro's public and external debt sustainability under alternative scenarios. The baseline scenario assumes continued implementation of a macroeconomic stabilization and structural reform program, while the low case scenario describes the alternative of a sluggish growth environment due to policy slippage/weak reform.
... See More + In addition, other sensitivity tests are conducted in order to highlight the vulnerability of the baseline case to specific shocks. The report concludes that Montenegro's public debt would be highly sustainable if economic reforms continue at their current pace, and the 2007 fiscal policy is maintained over the coming years.
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Debt and Creditworthiness Study 68903 FEB 08, 2007
Seychelles is at a development crossroads. With public sector debt at over 200 percent of Gross Domestic Product (GDP), manifested by years of poor macroeconomic management and rigid economic structure, the economy has been experiencing a serious downturn since the beginning of the 2000s.
... See More + While real GDP contracted by cumulative nine percent for the past four years, the significantly overvalued rupee has led to a loss of export competitiveness, leading to persistent balance of payments difficulties. Following independence in 1976, Seychelles adopted a state-led development model, in which the Government plays a dominant role in every segment of the economy through extensive controls and regulations. It intervened directly in manufacturing, distribution, trade and other economic activities through its parastatals, often at the expense of private sector development. Provision of education and health services was predominantly the responsibility of the Government. Seychelles is faced with formidable challenges in the years ahead. With public sector debt at some 200 percent of GDP, manifested by decades of poor policy management, there is no painless solution to Seychelles debt predicament. For Seychelles the primary tool to reduce the debt burden, and turn the economy back to a sustained growth path is the implementation of a comprehensive macroeconomic reform program, with a strong emphasis on fiscal adjustments, privatization, exchange rate realignments and structural reforms. Without a significant change in policy direction, Seychelles medium-term prospects are bleak. Continuation of the present policies will neither mitigate the acute foreign exchange shortages nor further build-up of debt, which will be even more damaging in the future. This paper is structured as follows. Section 2 presents the basic facts about Seychelles public sector debt and analyzes its burden and sustainability. Section 3 then discusses the medium-term economic outlook, assuming that no significant economic adjustments are made. Section 4 then seeks ways to reduce Seychelles public sector debt to a more sustainable level, and discusses a comprehensive macroeconomic reform package that is needed to achieve this goal. Section 5 concludes the paper.
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Debt and Creditworthiness Study 68959 OCT 01, 2005
The Government of Indonesia has been placing increasing emphasis on development of the Nonbank Financial Institutions (NBFIs). Well-functioning government and corporate debt markets are critical elements of modern financial systems.
... See More + A mature domestic bond market offers a wide range of opportunities for funding the government and the private sector, with the government bond market typically creating necessary benchmarks for other issuers. Bond markets play a critical role by assisting governments and firms in mobilizing financing for investment needs; helping governments and firms in obtaining financing directly from the market. In many countries, bond financing is the main source of long-term financing because commercial banks' shorter-term liabilities place constraints on their ability to finance long-term assets. Demand from other sources is also growing. Indonesia is committed to a large infrastructure development program, a substantial portion of which is expected to be financed by private capital mobilized from domestic as well as international capital markets. Particular effort is being made to encourage the financing of private infrastructure projects through domestic bond markets. In the medium term, sub-national governments will also increasingly need access to bond markets. All in all, therefore, domestic debt markets will play an increasing role in Indonesia's financial sector.
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Debt and Creditworthiness Study 69594 SEP 28, 2005
Following two decades of relatively rapid growth, and a decade of liberalization, there is growing confidence within India, as well as internationally, about the state of the economy, and India's development potential.
... See More + Nonetheless, and particularly since the late nineties, when India's states experienced a sharp fiscal deterioration, they have faced a squeeze on development spending, particularly acute in the poorer ones. In response, most state governments embarked on fiscal reforms, aimed at reducing deficits, and enabling effective interventions in priority areas. States in India play an increasingly important role in devising, and implementing policies to stimulate economic growth, and promote human development. But the performance of India's states is increasingly divergent, State deficits and debt levels rose sharply in the late nineties, and off-budget liabilities also increased rapidly. This sharp fiscal deterioration gave rise to state-level fiscal adjustment efforts, which in recent years have shown some signs of improved fiscal performance. Concerns about the level, and composition of fiscal deficits remain. The report states that a halt in reforms would endanger the states quality and quantity of productive expenditures, while debt levels would steadily build. It reviews expenditure reforms - particularly salaries, at the core of expenditure restructuring - and, pensions as a rapidly-mounting liability, which can be contained by parametric reforms, and longer-term structural reforms, while also examines subsidies, exemplifying the difficulties involved in reforming subsidy regimes. Regarding power sector reforms, commercial discipline should be a top priority. Public enterprise reforms are outlined, suggesting that while immediate fiscal gains may not be achieved, such reforms will prevent future budgetary support from keeping loss-making enterprises afloat. On examining revenue reforms, the report indicates these are essential to reduce fiscal imbalances, suggesting the elimination of tax on inter-state exports is critical, and should proceed with, or without the value-added tax (VAT), specifying tax administration reforms are perhaps more important than tax reforms. On strengthening the fiscal federal framework, it is recommended States need more flexibility to borrow, but under a centrally-imposed aggregate borrowing cap. Three institutional reform would therefore help fiscal federalism in India: Finance Commission as a permanent body; entrusting a single agency in compiling timely state-level fiscal data; and, reviewing the role of the Planning Commission.
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Debt and Creditworthiness Study 28849 NOV 10, 2004
The need for an effective public debt management strategy has increased with Tunisia's stronger presence in the international financial markets and the larger exposure to changing borrowing conditions and exchange rate fluctuations.
... See More + At the same time, there are better conditions today for public debt management, with the deepening the secondary market for Tunisian debt instruments on the international bond market, while the public debt management strategy would be greatly strengthened by the steps taken to develop the domestic government securities market. This study discusses options to the reform of the government public debt management practices, with the aim of increasing their efficiency, consolidating further the country's market access and containing the costs and risks of borrowing in both external and domestic markets. The study is intended to facilitate the introduction of an action plan for the implementation of the public debt management strategy, as part of the set of measures aiming at strengthening the macroeconomic framework in Third Economic Competitiveness Adjustment Loan Project (report no. P7489). Chapter One presents debt sustainability scenarios and discusses the underlying vulnerability factors. Chapter Two examines key principles of a strategy for public debt management, and presents a discussion of how active risk management can be progressively introduced in Tunisia. The analysis benchmarks Tunisia's debt situation against other emerging economies with comparable characteristics. Chapter Three addresses reform options to step up the development of domestic government securities market-a key component of the strategy. Finally, Chapter Four considers options in institutional reforms that would facilitate the implementation of the desired innovations in debt management strategy and operations.
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Debt and Creditworthiness Study 27599 JAN 01, 2004
The need for an effective public debt management strategy has increased with Tunisia's stronger presence in the international financial markets and the larger exposure to changing borrowing conditions and exchange rate fluctuations.
... See More + At the same time, there are better conditions today for public debt management, with the deepening the secondary market for Tunisian debt instruments on the international bond market, while the public debt management strategy would be greatly strengthened by the steps taken to develop the domestic government securities market. This study discusses options to the reform of the government public debt management practices, with the aim of increasing their efficiency, consolidating further the country's market access and containing the costs and risks of borrowing in both external and domestic markets. The study is intended to facilitate the introduction of an action plan for the implementation of the public debt management strategy, as part of the set of measures aiming at strengthening the macroeconomic framework in Third Economic Competitiveness Adjustment Loan Project (report no. P7489). Chapter One presents debt sustainability scenarios and discusses the underlying vulnerability factors. Chapter Two examines key principles of a strategy for public debt management, and presents a discussion of how active risk management can be progressively introduced in Tunisia. The analysis benchmarks Tunisia's debt situation against other emerging economies with comparable characteristics. Chapter Three addresses reform options to step up the development of domestic government securities market-a key component of the strategy. Finally, Chapter Four considers options in institutional reforms that would facilitate the implementation of the desired innovations in debt management strategy and operations.
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Debt and Creditworthiness Study 27599 JAN 01, 2004
