According to the International Monetary Fund (IMF), domestic bond markets help to foster financial stability, reduce inflationary funding, improve financial intermediation and assist governments in managing the effects of volatility in the international economic and financial system. Khaled Fouad, senior vice-president, merchant banking at TNI, says: “In the absence of a debt market, any crisis in the banking industry will have a spillover effect and would likely require the government to step in and assume the burden in order to prevent the financial system from collapsing.”
The bad news for the MENA region is that its bond markets remain among the world’s weakest when it comes to financial intermediation.
Access this research
Enter your work email address to sign in or check whether your organisation already has access to Euromoney.
