Erschienen in:University of Cyprus Economics Research Centre - Economic Policy Paper ; No. 12-06
Umfang:
1 Online-Ressource (45 p)
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Nicht zu entscheiden
DOI:
10.2139/ssrn.1003230
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Entstehung:
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Nach Informationen von SSRN wurde die ursprüngliche Fassung des Dokuments December 2006 erstellt
Beschreibung:
The main objectives of this paper are to describe the evolution and current challenges of public debt management and debt market development in Cyprus in order to identify relevant policy options for the authorities. Two separate stages can be conceptually distinguished: the period of financial repression (prior to 1996), and the period of progressive financial liberalization culminating with EU entry (1996-2005). Although significant progress has been made in the latter stage in terms of using market-based mechanisms and adopting a more sound public debt composition, there remain important weaknesses to be addressed in view of the forthcoming entry of Cyprus into the Eurozone.Three main (and mutually reinforcing) challenges are identified and analyzed in this paper: institutional arrangements for public debt management, modernization of the primary and secondary government debt market, and upgrading investment management skills of domestic institutional investors. International good practice, as well as the experience of a selected peer group of countries, is used to review and propose policy options going forward.The proposed reform agenda is fairly ambitious and calls for an integrated approach given the inter-linkages between reforms - however, it is well-aligned with the authorities' stated aims and includes several policy recommendations that had already been discussed. What is important going forward is for the authorities to promptly resolve outstanding issues and prepare the groundwork for the introduction of these reforms via a carefully sequenced roadmap