September 2000
A small group of senior central bankers from the emerging markets met at the BIS in December 1999 to discuss the management of foreign debt and liquidity. Recent crises have revealed major shortcomings in these policies and the dangers of excessive foreign debt, particularly short-term debt. Two days of discussion highlighted the various issues confronting policy makers. The first paper in this book provides an overview of these issues and the papers that follow highlight the experiences of specific economies.
The issues discussed include the idea of "national liquidity", the question of how much government debt should be issued domestically and how much externally, the development of domestic bond markets and the relationship between government debt management and reserve management. The papers also examine possible policies towards the management of the private sector's external debt. Such policies include prudential rules for banks, capital controls, disclosure requirements and regulations on corporate borrowing.
| Participants in the meeting | 1 |
| Managing foreign debt and liquidity risks in emerging
economies: an overview
John Hawkins and Philip Turner |
3 |
| Managing foreign debt and liquidity risks in Chile
Jorge Marshall |
60 |
| Managing the external balance sheet: a Hong Kong
perspective
Tony Latter |
73 |
| Managing foreign debt and liquidity: India's experience
Y V Reddy |
76 |
| Stabilisation, vulnerability and liquidity as a safety
net: some thoughts evoked by the Israeli experience
Sylvia Piterman |
88 |
| Policy responses to strengthen liquidity risk management
in Korea
Bo Yung Chung |
104 |
| Macroeconomic aspects of the management of external debt
and liquidity: reflections on the Mexican experience
José Sidaoui |
118 |
| Poland's vulnerability to turbulence in financial
markets
Ryszard Kokoszczynski and Andrzej Slawinski |
138 |
| Managing foreign debt and liquidity risks in emerging
markets: selected issues from a South African perspective
James Cross |
147 |