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IMF chief says new research shows data transparency cuts borrowing costs
February 8, 2017 / 4:34 PM / 10 months ago

IMF chief says new research shows data transparency cuts borrowing costs

WASHINGTON, Feb 8 (Reuters) - 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)

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