Liu, Lili
Managing Subnational Credit and Default Risks Liu, Lili [electronic resource] / Liu, Lili - Washington, D.C., The World Bank, 2010 - 1 online resource (20 p.) - Policy research working papers. World Bank e-Library. .
As a result of worldwide decentralization, subnational debt is rising. Subnational debt crises in major developing countries in the 1990s have led to strengthened regulatory frameworks for subnational borrowing and insolvency. With the fragility of the global recovery and increasing public debt, and the structural trends of decentralization and urbanization, it becomes more important to prudently manage subnational default risks. Although the regulatory frameworks share central features, the historical context and entry points for reform drive variations across countries. Addressing soft budget constraints is integral to the regulatory framework. Ex ante fiscal rules for subnational governments attempt to limit default risks; ex post regulation predictably allocates default risk, while providing breathing space for orderly debt restructuring and fiscal adjustment, as well as the continued delivery of essential public services. The regulatory reforms are inseparable from the reform of broader intergovernmental fiscal systems and financial markets.
10.1596/1813-9450-5362
Access to Finance
Bankruptcy and Resolution of Financial Distress
Banks & Banking Reform
Budget Constraints
Debt
Debt Crises
Debt Financing
Debt Management
Debt Markets
Debt Restructuring
Finance and Financial Sector Development
Financial Crisis
Financial Institutions
Financial Markets
Fiscal Reforms
Insolvency
Local government debt
Macroeconomics and Economic Growth
Net debt
Public debt
Public disclosure
Public investment
Regulatory framework
Regulatory frameworks
Regulatory reforms
Sovereign debt
Subnational Economic Development
Managing Subnational Credit and Default Risks Liu, Lili [electronic resource] / Liu, Lili - Washington, D.C., The World Bank, 2010 - 1 online resource (20 p.) - Policy research working papers. World Bank e-Library. .
As a result of worldwide decentralization, subnational debt is rising. Subnational debt crises in major developing countries in the 1990s have led to strengthened regulatory frameworks for subnational borrowing and insolvency. With the fragility of the global recovery and increasing public debt, and the structural trends of decentralization and urbanization, it becomes more important to prudently manage subnational default risks. Although the regulatory frameworks share central features, the historical context and entry points for reform drive variations across countries. Addressing soft budget constraints is integral to the regulatory framework. Ex ante fiscal rules for subnational governments attempt to limit default risks; ex post regulation predictably allocates default risk, while providing breathing space for orderly debt restructuring and fiscal adjustment, as well as the continued delivery of essential public services. The regulatory reforms are inseparable from the reform of broader intergovernmental fiscal systems and financial markets.
10.1596/1813-9450-5362
Access to Finance
Bankruptcy and Resolution of Financial Distress
Banks & Banking Reform
Budget Constraints
Debt
Debt Crises
Debt Financing
Debt Management
Debt Markets
Debt Restructuring
Finance and Financial Sector Development
Financial Crisis
Financial Institutions
Financial Markets
Fiscal Reforms
Insolvency
Local government debt
Macroeconomics and Economic Growth
Net debt
Public debt
Public disclosure
Public investment
Regulatory framework
Regulatory frameworks
Regulatory reforms
Sovereign debt
Subnational Economic Development