Debt Management
Fed set to adopt ‘elements’ of price-level targeting
Covid-19 could act as a catalyst for a Janet Yellen-supported Fed move to adopt elements of price-level targeting. But questions remain about the timing of such a move
IMF draws links between transparency and debt accumulation
Fund praises efforts taken by Tunisia and Uzbekistan, and urges others in the region to improve accountability of fiscal institutions
Somali governor says mobile money platforms play key role
Kristalina Georgieva says IMF offers “full support” to Somalia’s efforts to secure debt relief
Japan’s public debt financing strategy may be unsustainable – research
Public sector financing of its own borrowing hit by losses at public companies and volatility
Argentina reimposes currency controls as peso plummets
Authorities aim to stem depreciation of peso, which has fallen 23.9% against dollar since August 11
Argentina opens IMF talks as crisis deepens
Government extends debt maturity and pledges reserves will not be used to repay international investors
Germany issues first ever zero coupon 30-year bond
Move raises questions over how ECB will respond to tough conditions, analysts say
IMF negotiating new arrangement with São Tomé and Príncipe
São Tomé’s IMF arrangement expired last year
Zimbabwe holds first treasury bill auction in seven years
But finance minister says inflation figures will not be published until next year
African governors discuss concerns over rising debt
Central bankers stress need for African cooperation in face of weakening global economy
Mexican currency under pressure over ratings downgrades
Fate of the sovereign is increasingly linked to struggling oil company Pemex
IMF and World Bank develop system to support debt management
System provides methodology and analytical tools for countries in the process of adopting these techniques
Barbados central bank comes under fire over tourism data
Minister says he has “no idea” where the governor got his information
Central banks still value diversification, say reserve managers
Rise in US yields does not outweigh the benefits of forex diversification, say delegates attending Nalm Americas
Mersch: no political appetite for ‘European safe bonds’
The proposal for pooled, tranched bonds is “interesting”, but the public are likely to be suspicious
Post-Brexit gilt auctions met with strong demand
Trends in gilt yields show UK debt still seen as ‘safe haven’ asset, says one analyst; others attribute strong demand in this week’s auctions to range of factors
Ugandan deputy calls for caution in forecasting deficits
Louis Kasekende warns inflation could be threatened if governments lose access to the market and are unable to meet their borrowing requirements, turning to the central bank instead
Debt deal struck but ‘heated’ discussions await Argentine president in congress
Vulture funds satisfied but Argentine president faces an ‘uphill’ battle getting deal through congress; analysts ultimately expect it to be approved, but see other challenges on the horizon
Snapshot: IMF reveals staff views on Argentina
IMF releases informal briefings compiled 2013-2015 in absence of Article IV; staff highlighted adverse effects of central bank and banking sector financing of government
Eurozone sovereign debt crisis has increased financial fragmentation, paper argues
Eurozone corporate bonds have different risk premia according to which country a company is headquartered in, paper argues; fragmentation has ‘dampened effectiveness’ of ECB policy
Denmark focuses on long-dated issuance amid low rates
National Bank of Denmark’s 2016 debt issuance strategy uses long maturities to reduce interest rate risk as low rates hold down costs; return to more normal footing after last year’s suspension
Argentina inches towards repaying debt
Montreux Partners LP and EM Ltd settle; four creditors yet to agree on removing injunction
Debt repayment problems have ‘severe consequences’ on consumption, paper finds
Quarterly consumption 30% lower when debt repayment problems arise, research suggests, while recovery after the arrears is smaller than the initial decline
Jamaican officials point to management plans as debt falls
Jamaica set to reduce debt-to-GDP ratio to 125% in pursuit of 90% target; officials from central bank and debt management branch welcome changes in past year