Sovereign debt
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
ECB expected to cut rates and restart QE to boost inflation
But Draghi’s ambitious stimulus package faces growing opposition from governors in surplus countries
High public debt hampers fiscal stimulus in eurozone – Bank of Portugal research
High debt deepens crises, increases spillover effects and cuts scope for counter-cyclical fiscal policy
Eurozone needs low-risk asset, ECB paper says
New asset would allow banks to change holdings of sovereign bonds, researchers argue
Bank of Mexico’s board disagreed on last rate cut – minutes
One board member opposed recent 25bp rate cut due to high inflation and uncertain fiscal outlook
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
ECB’s bond purchases restrict monetary policy – DNB paper
Higher demand for safe assets widens sovereign bond spreads- paper
IMF’s Adrian on the big tech threat and why a ‘non-system’ works
IMF’s financial counsellor talks about efforts for the fund to craft well-targeted policy guidance
Government assets are just as important as deficits – IMF research
Borrowing costs are determined by structure of public assets
IMF negotiating new arrangement with São Tomé and Príncipe
São Tomé’s IMF arrangement expired last year
IMF extends deadline to implement increase in quotas
Executive board allows members to consent to and increase their contributions until December 27, 2019
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But finance minister says inflation figures will not be published until next year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
ECCB launches public debt investor information website
New website could help solve “long-standing issue” of excess liquidity, ECCB governor says
ESM shakes up management structure
EU agency adds board member and new divisions to prepare for expanded role
Pakistan sharply increases rates on higher inflation
Central bank increases policy rate by 100 basis points to 13.25%
South African president reappoints Sarb governor
Ramaphosa gives second term to Kganyago, who has defended central bank’s independence
Mexican peso falls on finance minister resignation
Crisis complicates inflation outlook and fuels fear of political interference in independent institutions
BdF paper models tax evasion’s impact on sovereign default
Widespread tax evasion can undermine austerity plans imposed by donors, argue researchers
Sovereign debt restructuring does not hamper returns long-term – IMF paper
Investors who sell during crises fare much worse than those who buy and hold
US company debt and euro public debt are global financial risks – IMF
China’s non-bank financial firms are also a major vulnerability, fund says
Book notes: Why not default?, by Jerome Roos
Thought-provoking book that will repay investment of any reader with an interest in sovereign debt
IMF formalises strategy on ‘social spending’
Lagarde says tackling inequality, exclusion and other social problems is key to rebuilding trust