Does Debt Management Matter? YES

Kiguel, Miguel A.

World Bank, Washington, DC

关键词: ARBITRAGE;    BALANCE OF PAYMENTS;    BANKING SECTOR;    BANKING SYSTEM;    BONDS;   

RP-ID  :  21252

学科分类：社会科学、人文和艺术（综合）

来源: World Bank Open Knowledge Repository

【 摘 要 】

Debt management can reduce financialvulnerability by limiting liquidity, and rollover risks.This note reviews Argentina's debt management strategy,towards improving the country's credit rating to aninvestment grade, providing flexibility, liquidity, andopportunity. However, the risks of refinancing can be largerfor domestic currency debt, than for foreign currency debt.Lessons from Argentina's experience suggest thatvolatile flows can be dealt with, through prudentialregulation in the banking sector, and overall sound policiesin capital markets. Furthermore, avoiding the conversion ofprivate debt into public debt, also helped Argentinaovercome the crisis; but perhaps, the biggest challenge isto develop new indicators of financial vulnerability, whichshould put more weight on stocks of debt, and otherfinancial assets, rather than on flow indicators, such asthe current account deficit.