Latin American Capital Markets

296 CLEMENTE DELVALLETable 10-1 I Size of the Government Securities MarketI (Outstanding debt securities, September 2001)CountryArgentinaBrazilCanadaChileColombiaFranceGermanyItalyJapanMexicoPeruSpainUnited KingdomUnited StatesUruguayVenezuelaSource: BIS.Domestic marketsTotal debt(billions ofU.S. dollars)30269563311,0911,6561,3146,34381436593915,057Governmentsecurities(percent)90.485.069.960.360.743.375.375.383.345.975.945.255.7International marketsTotal debt(billions ofU.S. dollars)87632065133751,0032612776501745992,126312Governmentsecurities(percent)85.151.749.69.383.67.31.927.66.146.321.2I.I29.489.356.3sources (multilateral banks and international capital markets) to finance their needs.Thus, the first challenge that Latin American countries face in the capital marketsframework is to develop sound domestic government securities markets and to respondto their growing financing needs.To achieve this goal, countries must tackle importantchallenges at the micro level. The main challenges are to develop soundmoney markets, increase competition among market participants, provide liquidityand transparency to secondary markets, expand the investor base, provide a soundregulatory framework, establish a regular and transparent primary market system, andstrengthen government debt management capacity (human resources and informationtechnology).The challenges and the initial achievements are clear What seems to be lackingin many of these countries is government awareness that, by having a more systematicand comprehensive vision of the requirements of developing bond markets,the countries could be more successful and expedient in achieving this very impor-Copyright © by the Inter-American Development Bank. All rights reserved.For more information visit our website: www.iadb.org/pub