Low-Income Countries' Access To Private Debt Markets

Abstract

The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. The papers carry the names of the authors and should be cited accordingly. The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the views of the International Bank for Reconstruction and Development/World Bank and its affiliated organizations, or those of the Executive Directors of the World Bank or the governments they represent.

Interests over institutions: Political‐economic constraints on public debt management in developing countries

“…Volatility exacerbates the fact that developing countries have lower sustainable‐debt thresholds (Reinhart & Rogoff, 2009) and the fact that foreign debt is particularly risky for countries without benchmark currencies (Eichengreen, Hausmann, & Panizza, 2007). Still, though, many developing countries have market access at some price (Gelos, Sahay, & Sandleris, 2011; Hostland, 2009).…”