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Subnational debt, borrowing process, and creditworthiness (English)

This is a portion from the Intergovernmental Fiscal Relations and Local Financial Management conference concerning subnational debt, borrowing process, and creditworthiness. Much of this paper draws from John Petersen and John Crihfield, Linkages Between Local Governments and Financial Markets: A Tool Kit to Developing Subsovereign Credit Markets in Emerging Economies (Draft, December 1998). On the subject, the author claims that the use of credit, raising funds today that will be repaid tomorrow with interest, is one of the fundamental issues governments at all levels face. Sovereigns, the usually superior national-level government, will have many more choices in this regard because they have control over the money supply and the operation of the banking system and credit markets. However, the more open that national economies have become, the more even those options are curbed by the workings of the international economy. There are four additional components of this paper and they are as follows: (1) subnational government debt and types of security, (2) debt structures, instruments, transactions, and markets, (3) documentation, disclosure, and financial reporting, (4) creditworthiness, analysis and ratings. The paper concludes with a number of presentation slides concerning various government concepts for improving fiscal relations.

Details

  • Document Date

    1999/02/24

  • Document Type

    Working Paper

  • Report Number

    93889

  • Volume No

    1

  • Total Volume(s)

    1

  • Country

    World,

  • Region

    The World Region,

  • Disclosure Date

    2015/01/29

  • Disclosure Status

    Disclosed

  • Doc Name

    Subnational debt, borrowing process, and creditworthiness

  • Keywords

    general obligation;bond;price and quality of service;debt service;debt service payment;payment of debt service;investment grade credit rating;Internal rate of return;subsovereign credit market;general revenues;security market;rates of interest;variable rate debt;future interest payments;event of default;floating rate debt;cash flow profile;evidence of ownership;cost of service;local school district;fixed interest rate;method of sale;emerging economy;yield curve;Emerging economies;types of debt;general obligation bond;cost of debt;repayments of principal;allocation of resource;intensity of competition;long term capital;short term debt;lack of liquidity;long term debt;interest rate decline;interest in asset;assignment of transfer;general purpose governments;repayment of debt;general obligation debt;municipal bond market;infrastructure and services;amount of debt;city management capacity;limited security arrangement;demand for output;case of failure;emerging market country;source of revenue;bank credit facility;case of default;prevailing interest rate;economies of scale;freedom of choice;interest rate structure;short term deposit;sound financial institution;private capital market;payment of cost;local government loan;operation and management;management of debt;foreign currency payment;bond purchase agreement;portion of total;secondary market trading;devolution of responsibility;combination of factor;variable rate instrument;cash flow requirements;number of investors;bonds to investor;pledge of asset;financial market structure;payment of interest;short term investment;public utility operation;dealer to dealer;sinking fund;Public Utilities;short maturity;local unit;bond issue;capital expenditure;revenue bond;intergovernmental transfer;general fund;shared tax;long-term rate;emerging country;banking system;payment mechanism;private debt;local bank;public market;legal authority;maturity structure;physical asset;refinancing risk;market competition;commercial banking;banking service;short-term rate;bond proceeds;interest cost;enterprise financing;financial service;short-term debt;debt obligation;term bond;domestic security;bond offering;serial bond;competitive auction;municipal asset;project finance;future debt;repayment structure;maximum maturity;call option;

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Citation

Subnational debt, borrowing process, and creditworthiness (English). Proceedings Washington, D.C. : World Bank Group. http://documents.worldbank.org/curated/en/234911468334455053/Subnational-debt-borrowing-process-and-creditworthiness