More than 20 developing countries do not publish any data on their sovereign debt. In those that do disclose data, public debt statistics usually do not comply with international standards in terms of coverage and definitions. Some information can be deduced through indirect disclosure of debt statistics to external agents, such as the World Bank and the International Monetary Fund, and this can help minimize data gaps. This paper has two main objectives. First, it measures the extent of transparency in direct reporting and identifies the factors that promote it. The results show that debt transparency is fostered by standardized recording and reporting systems, high levels of external scrutiny (for example, Eurobond issuance and ratings), and the presence of highly skilled staff at the local debt office. Second, the paper describes the reporting ecosystem in which two type of channels (direct and indirect) coexist and provides novel estimates of the data gaps across the two. Cross-comparison of direct reporting and the World Bank–International Monetary Fund Debt Sustainability Analysis shows that deviations in public debt stocks can represent up to 30 percent of national gross domestic product. Based on these results, the paper puts forward a call for action to (i) improve debt transparency by focusing on those factors that best promote transparency; (ii) shifting the focus of multilateral development banks’ operations and technical assistance from indirect to direct reporting; (iii) introducing minimum but enforceable international standards for direct reporting; and (iv) promoting the use of modern and integrated debt recording and reporting systems.
Details
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Author
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Document Date
2022/01/31
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Document Type
Policy Research Working Paper
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Report Number
WPS9920
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Volume No
1
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Total Volume(s)
1
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Country
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Region
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Disclosure Date
2022/01/31
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Disclosure Status
Disclosed
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Doc Name
Public Debt Reporting in Developing Countries
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Keywords
Debt Statistics; trade and investment; public debt; debt datum; clear separation of responsibility; low levels of debt; Integrated Financial Management System; affected country; Public and Publicly Guaranteed; public debt data; annual borrowing plan; public sector debt; debt recording system; credit rating agency; credit rating agencies; debt data recording; debt management strategy; central government debt; total debt stock; domestic debt market; social security fund; Public Debt Management; external debt datum; quality of data; source of financing; debt management activity; fragile and conflict; stock of debt; country fixed effect; level of compliance; term of data; debt management practice; domestic debt data; availability of information; duplication of efforts; category of debt; central government guarantee; secondary market trading; other contingent liabilities; expansion of coverage; term debt; state-owned enterprise; direct public debt; increase in debt; foreign exchange volatility; quality of debt; international debt market; international financial architecture; multilateral development bank; highly indebted country; public debt stock; data quality control; external debt stock; demand for debt; international financial institution; Learning and Innovation Credit; debt reporting; debt instrument; disclosure framework; national authority; national gdp; debt portfolio; time lag; legal requirement; reporting system; international standard; data manipulation; portfolio composition; data reconciliation; contingent liability; future debt; Borrowing Countries; data gaps; legal framework; data reporting; limited coverage; integrated system; partial coverage; debt service; multiple sources; disclosure practices; foreign currency; data limitation; debt information; debt sustainability; debt source; reporting requirement; college graduate; external borrowing; investor relation; skilled staff; local debt; comparability issue; debt restructuring; debt coverage
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Citation
Rivetti,Diego
Public Debt Reporting in Developing Countries (English). Policy Research working paper,no. WPS 9920 Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/385051643653142482/Public-Debt-Reporting-in-Developing-Countries