Europe s Chimerical Capital Markets Union

Domestic capital markets were non existent.

That was strictly a capital markets phenomena.

Financial markets did well through capital market liberalization.

a. avoid destabilising capital flows to maximise benefits from globalised capital markets, thereby minimising risk

National Governments may also be able to enhance local authorities' direct access to capital markets, domestic and international, by granting authority to municipalities to issue infrastructure bonds.

International capital markets already have curtailed credit to these countries.

(ii) Access to capital markets and other sources of financing

It reflects primarily a revival of confidence of capital markets in these economies, especially in Latin America, but is also partly explained by deregulation of capital markets.

The SOEs compete in product and labor markets with the private sector, but less so in capital markets.

The banking system remains unhealthy and fragile capital markets are dying.

The notion that capital markets could self regulate was decisively rejected.

Confidence returned, capital flight from Latin America was reversed, and capital markets became willing to provide financing again.

This capital is typically provided through equity flotation on securities markets and through venture capital firms and DFIs.

The liberalization of financial markets has made it easier for larger SMEs to gain access to international capital markets.

American officials countered that the financial inflows reflected Europe s underdeveloped capital markets.

Some speakers noted the importance of developing private capital markets in Africa.

quot (i) Appropriate development of capital markets, according to level of development

I want to talk about it from the perspective of capital markets.

Emerging markets should cope with inflows by finding ways to use foreign capital more effectively, which involves strengthening domestic financial markets.

Our capital markets are sufficiently sophisticated and sufficiently deep that most large corporations have plenty of alternative ways to find capital.

More efficient and stable international capital markets should lead to decreased intermediation costs and risk premia and, therefore, cheaper capital for investment.

Rating agencies have been and should remain an important aspect of modern capital markets.

Both investors and publicly traded firms are operating in increasingly integrated global capital markets.

First, most emerging markets feel their currencies pressed to appreciate by growing capital inflows.

(b) Interactions between the development of SMEs and of capital markets and banking systems

South African firms have used their relatively lower cost of capital to invest in other African countries where capital markets were not developed.

quot (d) Policies and measures that could contribute to the return of flight capital Policy implications from further integration in global capital markets

Witness the surge in capital flows to emerging markets as investors chase higher financial returns.

In this respect, they require institutional and technological capacity, access to markets and financial capital.

Helped by the Brady plan, most have regained access to the international private capital markets.

Privatization favoured those in the previous system who had access to capital, information and markets.

quot (c) Problems of access to international capital markets and other sources of external finance

Markets like this in the Egyptian capital, Cairo, still capture the intensity of medieval trade.

More fully integrated capital markets, to provide project capital and investment funds, are required in order to improve the whole infrastructure of the region.

The risks faced by developing countries over the business cycle could be better managed through development of domestic capital markets, especially local currency bond markets.

Brady s plan looked like a great success. Confidence returned, capital flight from Latin America was reversed, and capital markets became willing to provide financing again.

They were then punished for a few years by not having access to international capital markets.

This has increased the vulnerability of many emerging markets to a sharp reversal in capital flows.

The Fund has no instrument to provide short term liquidity to emerging markets facing capital volatility.

Development of capital markets needs to be supported through a series of reforms at various levels.

Assistance in capacity building could help municipal authorities in laying the groundwork for accessing capital markets.

The Facility combines the long term donor commitment with leverage funds from the international capital markets.

(d) Strengthen local capital markets, including new or expanded stock exchanges and specialized financial institutions, providing equity and loan capital to small and medium size enterprises

The consequences of abnormal capital flows into China are becoming increasingly apparent, particularly in foreign exchange markets.