WASHINGTON Feb 8 New International Monetary
Fund data shows that countries that improve the transparency of
their economic and fiscal data are rewarded with significantly
lower borrowing costs, IMF Managing Director Christine Lagarde
said on Wednesday.
Lagarde, in prepared remarks to the Atlantic Council, said
that a yet-to-be published IMF staff research paper will show
that adherence by countries to the Fund's data transparency
initiatives leads to a 15 percent reduction in the spreads on
emerging market sovereign bonds - just three months after the
improvements are made.
"IMF staff research also shows that, during crises, capital
flight is greater in the least transparent countries, which
underlines the benefits for financial stability that
transparency can bring," Lagarde said in prepared remarks.
The IMF said that the paper, titled, "The Effects of Data
Transparency Policy Reforms on Emerging Market Sovereign Bond
Spreads," will be published this year.
(Reporting by David Lawder; Editing by Andrea Ricci)