A well-functioning bond market will help to create more growth and stability, not only in Mauritius, but also in the region. As we all know, a deep and liquid bond market is a key component of a thriving financial centre. An efficient and mature bond market contributes directly to macroeconomic and financial stability.
It constitutes an alternative source of funding which can help the corporate sector to reduce over-reliance on short-term foreign currency loans. Currently, in the absence of a properly functioning local bond market, issuers who qualify for bond financing must have recourse to international financial markets to finance their local projects and have to bear the attendant exchange rate risk.