Domestic Debt Markets in Sub-Saharan Africa

March 1, 2004

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Format: Chicago

Jakob E Christensen. Domestic Debt Markets in Sub-Saharan Africa, (USA: International Monetary Fund, 2004) accessed December 26, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary

This study discusses the role of domestic debt markets in sub-Saharan Africa (SSA) based on a new dataset covering 27 SSA countries during the 20-year period 1980-2000. The study finds that domestic debt markets in these countries are generally small, highly short-term in nature, and often have a narrow investor base. Domestic interest payments present a significant burden to the budget, despite much smaller domestic than foreign indebtedness. The use of domestic debt is also found to have significantly crowded out private sector lending. Finally, the study identifies significant differences between the size, cost, and maturity structure of domestic debt markets in HIPCs and non-HIPCs.

Subject: Domestic debt, External debt, Financial markets, Government debt management, Interest payments, Public debt, Public financial management (PFM), Securities markets

Keywords: Africa, Crowding out, Debt, Debt market, Debt portfolio, Debt problem, Debt reduction scheme, Debt stock, Debt sustainability, Domestic debt, Extent HIPCs, Government debt management, HIPCs, Interest burden, Interest cost, Interest payments, Investor base, Longer-term debt portfolio, Maturity structure, Securities markets, Short-term debt, Sub-Saharan Africa, Treasury bill, Treasury bill interest rates, WP

Publication Details

Pages:

23
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2004/046
Stock No:

WPIEA0462004
ISBN:

9781451846584
ISSN:

1018-5941

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