Development of Domestic Debt Markets

 

One of the objectives of a PDM strategy is to develop the domestic debt markets, in order to reduce dependence on foreign borrowing and associated risks. A mature domestic debt market also provides a range of opportunities for both government and private sector funding needs. This module will discuss some of the pertinent issues in developing domestic debt markets including:

 

• The legal and regulatory framework for domestic debt markets

• The Money market (Treasury Bills and Commercial Papers) and monetary policy and operations

• Fundamentals of the bond market

• Developing a primary market for government securities

• Debt Issuance Strategy – extending maturities

• The investor base

• Developing a settlement structure for government securities

• Secondary markets for securities

• Private sector bond markets