A. Macroeconomic and Political Environment

1. • Stable political system; no major internal social upheavals are expected.

2. • Continuity in economic policies; no major economic policy reversals in last ten years.

3. • Stable financial system; banking systems and capital markets are strong.

4. • No restrictions on economic activities, trade and foreign investment (for all industries).

5. • No restrictions on trade in financial services and foreign investment in financial sector.

6. • No capital controls which significantly impact on capital flows.

7. • Exchange rate regime which is conducive to efficient capital flows and payments.

8. • Existence of domestic coordinating mechanism among government agencies to develop local currency bond market.

9. • Existence of mechanism to coordinate development of local currency and regional bond markets with other governments.

B. Regulatory Framework

1. • Clearly defined creditor rights, insolvency and informal workout processes.

2. • Effective enforcement of creditor rights.

3. • Tax and administrative procedures conducive to holding and trading of bonds.

4. • Effective legal framework for asset securitization.

5. • Cross-border securities transactions are unhindered.

6. • Robust system of clear, complete, timely and meaningful disclosure.

7. • Clear and sound rules on corporate governance, financial controls and market integrity.

8. • Effective enforcement of rules and penalties governing capital market activity.

9. • Market regulation and supervision effectively balances interests of all market participants

10. • Consistent regulations and laws (including taxation) promoting capital market activities.

11. • Competition regulator with full authority to act against anticompetitive market activity.

C. Reporting Framework

1. • Robust and transparent accounting standards for financial and non-financial institutions.

2. • Convergence of domestic accounting standards with the IFRS.

3. • Existence of time-framed plan for converging domestic accounting standards with IFRS.

D. Public-Private Sector Partnership

1. • Healthy cooperation between finance officials/regulators and the private financial sector.

2. • Existence of domestic consultative mechanism between public and private sectors to develop local currency bond markets.[…]