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006    m     o  d
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008    020129s2017    dcu     o    i00  0 eng^^
024 7  10.1596/26273 |2doi
035    (CKB)4920000001213580
035    (The World Bank)26273
035    (US-djbf)26273
035    (EXLCZ)994920000001213580
040    DJBF |beng |cDJBF |erda
100 1  Haque, Tobias.
245 10 Push and Pull : |bEmerging Risks in Frontier Economy Access to International Capital Markets. / |cTobias Haque.
246    Push and Pull
264  1 Washington, D.C. : |bThe World Bank, |c2017.
336    text |btxt |2rdacontent
337    computer |bc |2rdamedia
338    online resource |bcr |2rdacarrier
347    data file |2rda
490 1  Other papers
520 3  Over the past decade, a large number of low- and lower-middle income 'frontier economies' have begun to access international private capital markets to meet fiscal financing needs. In this paper we seek to identify drivers of this trend, identify associated risks, and present policy implications for frontier-market policy-makers. Through simple analysis of the characteristics of recent frontier market issuers, we show that smaller, poorer, and less well-governed economies are now accessing global credit markets. Through cross-country regression analysis, however, we demonstrate that the capacity of these countries to issue debt (and the cost of this debt) continues to be influenced by their macroeconomic performance and quality of governance. Drawing on evidence from Ghana and Zambia, we illustrate potential risks arising from recent expansions of access to global debt markets, where rapid debt accumulation of foreign-denominated debt in the context of lessened market discipline and following recent debt relief is now posing pronounced debt sustainability and refinancing risks. We conclude that increased access to international debt markets presents both opportunities and risks to frontier issuers. The new cohort of frontier issuing economies should: i) take careful account of debt risks and debt sustainability considerations when developing fiscal policy and debt strategies; ii) work to reduce the costs of ongoing external borrowing through adopting sound economic policies and protecting credit ratings; and iii) develop domestic debt markets as a potential alternative source of fiscal financing through which to reduce reliance on foreign-denominated Eurobond debt with its associated refinancing and currency risks.
650  4 Access to Finance
650  4 Capital Markets and Capital Flows
650  4 Debt
650  4 Debt Markets
650  4 Finance
650  4 Finance and Financial Sector Development
650  4 International Financial Markets
650  4 Macroeconomics
700 1  Bogoev, Jane.
700 1  Haque, Tobias.
700 1  Smith, Greg.
830  0 Other papers
830  0 World Bank e-Library.
906    BOOK