Emerging market corporations have significantly increased their borrowing in international markets since 2008. This paper shows that this increase was driven by large-denomination bond issuances, most of them with face value of US$500 million.
... See More + Large issuances are eligible for inclusion in international market indexes, which attract institutional investors. Emerging market firms were able to cut their cost of funds by roughly 100 basis points by issuing large-denomination bonds. Firms face a tradeoff: issue large, index-eligible bonds to borrow at a lower cost (about 100 basis points) but pay the expense of hoarding cash. Because of the "size yield discount," many companies issued index-eligible bonds, increasing their cash holdings. The willingness to issue large bonds and hoard cash was greater for firms in countries with high carry trade opportunities. These post-2008 behaviors reflected a search for yield by institutional investors into higher-risk securities and are not apparent in developed economies.
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Policy Research Working Paper WPS8890 JUN 17, 2019
Pakistan is facing yet another balance of payment crisis. Authorities have taken some corrective measures and negotiated a 39-month stabilization program with the International Monetary Fund (IMF).
... See More + Nonetheless, inflationary pressures increased during FY19. Current account deficit narrowed as imports declined, however, exports performance remained weak. Despite the adjustment measures fiscal pressure persist due to high debt servicing and defense expenditures. Debt level is in breach of Fiscal Responsibility and Debt Limitation Act (FRDLA). The growth is projected to decelerate further in FY20, as the government tightens fiscal and monetary policy. This report highlights the importance of tackling the structural challenges which are hampering growth and investments. The report emphasizes that the failure to address these structural challenges, in parallel to addressing the macroeconomic imbalances, just means that the next crisis is another 4 to 5 years away.
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For over 40 years, development partners have entrusted the World Bank with the financial management of their contributions to World Bank trust funds and Financial Intermediary Funds (FIFs).
... See More + These resources complement the World Bank Group's mission to end extreme poverty and promote shared prosperity in a sustainable way. Trust funds and FIFs allow for the scaling up of activities, notably in fragile and crisis situations; provide immediate assistance in response to natural disasters and other emergencies; and pilot innovations that may be later mainstreamed into the Bank's operations. The World Bank as Trustee receives and invests development partner contributions to trust funds and FIFs, until funds are disbursed to final recipients for development projects. Such investment management services aim to preserve donor funds and enhance their value. The trust funds and FIFs portfolio has grown over the years due to an increase in development partner contributions for multi-year projects, an increase in the number of trust funds managed by the World Bank and investment returns. As of 30 June 2018, the volume of liquid assets held by trust funds and FIFs reached 29.7 billion US Dollars. This brochure provides information on the World Ban'’s investment management services for development partners. The Trust Funds and Partner Relations Department (DFTPR) within the World Bank's Development Finance Vice Presidency (DFi) serves as the liaison between development partners and external/internal clients on strategy, policy, and program management, as well as financial and risk management oversight for trust funds and FIF assets managed by the World Bank Treasury. The World Bank Treasury has substantial expertise in asset and liability management and a global reputation as a prudent and innovative borrower, investor and risk manager. In managing funds for development partners, the World Bank follows a well-defined investment process, applying a conservative risk approach with ongoing oversight through the World Bank's financial governance structure.
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This paper is part of a series of four Urban Policy Notes that provide a critical review on emergent challenges to Bhutan’s increasing urbanization and its ramifications for growth, livability and sustainability in line with the directives of the 12th Five-Year Plan (FYP) and the Vision 2020.
... See More + The four notes are: (a) Regional Development, (b) Municipal Governance and Finance, (c) Affordable Housing and (d) Urban Resilience. These notes build on the long engagement between the Royal Government of Bhutan (RGoB) and the World Bank on urban issues as well as the experiences of urban operations under Bhutan Urban Development Projects I (1999-2006) and II (2010-2019) and are intended to support the RGoB on key and emerging urban topics and guide Bank’s future analytical and investment support in the urban sector.
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This report provides an analysis of Cape Town’s residential property market in terms of its size and value, activity, and performance. Market size, value and activity are status quo analyses, setting out the shape and dynamics of Cape Town’s property market.
... See More + Market performance then considers these dynamics against specific performance objectives. Following this introduction, Section two provides the analytical framework for looking the market. It considers the role of the housing asset, how property market filtering happens, and how the housing market can be segmented to develop appropriate responses that are relevant to all of the City’s residents. In section three, the size and value of Cape Town’s residential property market is set out, together with an analysis of current activity in terms of supply of new housing, the resale market, lending and house prices. Section four then considers the actual performance of Cape Town’s property market and whether it is responding to the City’s goals for affordable and accessible housing, economic transformation and inclusive growth, and sustainable human settlements. The report then considers how responsive the market is to the demand pressures that exist and looks in some detail at performance in the Voortrekker Corridor and the Metro South-East Integration Zone. In section five, Cape Town’s property market is compared with those in the other major metros in South Africa. Section six concludes with considerations towards the realization of an inclusive residential property market in the city. The methodology for the analysis is summarized in section seven.
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This report provides preliminary findings of a consultancy about the perceived need for finance linked demand-side household subsidies to expand urban homeownership in South Africa for theincome group between R3,500 and R15,000/month (often referred to as the ‘affordable market’) and the current hindrances to their implementation.
... See More + The main question the consultancy sought to answer was whether a well-designed demand-side subsidy can work to expand the affordable housing market in South Africa. Our analysis suggests that there is capacity and an interest in this market segment in the private sector, and that a demand-side subsidy linked to credit is considered a critical requirement to open up this market. It also suggests that current inefficiencies in the affordable housing market can and should be addressed by better policies and regulations before a demand-side subsidy can be effective (e.g. more efficient and less costly housing standards and permitting procedures, improved infrastructure systems, and improved financial sector regulations and systems to mitigate risks and costs of lending for the affordable market). Such agenda will require comprehensive policy and regulatory reforms that go beyond the demand-side subsidy itself. It will also require a robust administrative and operational system for subsidy implementation. Different parts of such agenda are already being discussed.
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