Debt Management: Some Reflections Based on Argentina

Kiguel, 1998.

In most countries, the government is the largest borrower in the economy, and its decisions on debt management have significant effects on the development of the domestic capital market, the fiscal deficit and the country risk, measured as the spread of government bonds over the U.S. treasuries. The debt management strategy has important implications for the economy as whole. A good liability management strategy should result in lower borrowing costs, fluid access to the international capital markets, while minimizing any crowding out effects on private sector borrowing.