Managing Subnational Credit and Default Risks

Waibel, Michael; Liu, Lili

dc.creator	Waibel, Michael
dc.creator	Liu, Lili
dc.date	2012-03-19T18:40:52Z
dc.date	2012-03-19T18:40:52Z
dc.date	2010-07-01
dc.date.accessioned	2023-02-17T21:04:39Z
dc.date.available	2023-02-17T21:04:39Z
dc.identifier	http://www-wds.worldbank.org/external/default/main?menuPK=64187510&pagePK=64193027&piPK=64187937&theSitePK=523679&menuPK=64187510&searchMenuPK=64187283&siteName=WDS&entityID=000158349_20100719154958
dc.identifier	http://hdl.handle.net/10986/3847
dc.identifier.uri	http://localhost:8080/xmlui/handle/CUHPOERS/244811
dc.description	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.
dc.language	English
dc.relation	Policy Research working paper ; no. WPS 5362
dc.rights	CC BY 3.0 IGO
dc.rights	http://creativecommons.org/licenses/by/3.0/igo/
dc.rights	World Bank
dc.subject	ADJUSTMENT OF DEBT
dc.subject	ADMINISTRATIVE PROCEDURES
dc.subject	ARREARS
dc.subject	ASSET
dc.subject	ASSETS
dc.subject	ASSETS FOR DISTRIBUTION
dc.subject	ASSETS IN BANKRUPTCY
dc.subject	BAILOUT
dc.subject	BAILOUTS
dc.subject	BALANCE SHEETS
dc.subject	BANK LOANS
dc.subject	BANKRUPT
dc.subject	BANKRUPTCY
dc.subject	BANKRUPTCY CODE
dc.subject	BANKRUPTCY COURT
dc.subject	BANKRUPTCY FILINGS
dc.subject	BANKRUPTCY FRAMEWORK
dc.subject	BANKRUPTCY MECHANISMS
dc.subject	BANKRUPTCY PROCEDURES
dc.subject	BANKRUPTCY PROCEEDING
dc.subject	BARGAINING POWER
dc.subject	BENEFICIARIES
dc.subject	BEST INTERESTS OF CREDITORS
dc.subject	BOND MARKETS
dc.subject	BONDHOLDERS
dc.subject	BORROWER
dc.subject	BORROWERS
dc.subject	BORROWING CAPACITY
dc.subject	BUDGET
dc.subject	BUDGET CONSTRAINT
dc.subject	BUDGET CONSTRAINTS
dc.subject	BUDGET DEFICIT
dc.subject	BUDGET DEFICITS
dc.subject	CAPITAL INVESTMENT
dc.subject	CAPITAL INVESTMENTS
dc.subject	CAPITAL MARKET
dc.subject	CAPITAL MARKETS
dc.subject	CAUSE OF INSOLVENCY
dc.subject	CHAPTER 13
dc.subject	CLAIMS
dc.subject	CLASS OF CLAIMS
dc.subject	CONTINGENT LIABILITIES
dc.subject	CONTINGENT LIABILITY
dc.subject	CONTRACT LAWS
dc.subject	CONTRACTUAL RIGHTS
dc.subject	CORPORATE BANKRUPTCY
dc.subject	CORRECTIVE ACTIONS
dc.subject	CORRUPTION
dc.subject	CREDIT
dc.subject	CREDIT CONTRACT
dc.subject	CREDIT MARKET
dc.subject	CREDIT RATING
dc.subject	CREDIT RATINGS
dc.subject	CREDITOR
dc.subject	CREDITOR CLAIMS
dc.subject	CREDITOR RIGHTS
dc.subject	CREDITOR RIGHTS SYSTEMS
dc.subject	CREDITS
dc.subject	CREDITWORTHINESS
dc.subject	DEBT
dc.subject	DEBT ADJUSTMENT PLAN
dc.subject	DEBT CRISES
dc.subject	DEBT CRISIS
dc.subject	DEBT FINANCE
dc.subject	DEBT FINANCING
dc.subject	DEBT INSTRUMENT
dc.subject	DEBT INSTRUMENTS
dc.subject	DEBT MANAGEMENT
dc.subject	DEBT MARKET
dc.subject	DEBT OBLIGATIONS
dc.subject	DEBT PAYMENTS
dc.subject	DEBT PROBLEM
dc.subject	DEBT RELIEF
dc.subject	DEBT RESTRUCTURING
dc.subject	DEBT RESTRUCTURING MECHANISM
dc.subject	DEBT SERVICE
dc.subject	DEBTOR
dc.subject	DEBTORS
dc.subject	DEBTS
dc.subject	DECENTRALIZATION
dc.subject	DEFAULT
dc.subject	DEFAULT RISK
dc.subject	DEFAULT RISKS
dc.subject	DEFAULTS
dc.subject	DEVELOPING COUNTRIES
dc.subject	DISCHARGE OF DEBT
dc.subject	EFFECTIVE INSOLVENCY
dc.subject	EFFECTIVE INSOLVENCY SYSTEM
dc.subject	ENFORCEMENT
dc.subject	EXCHANGE RATES
dc.subject	EXISTING DEBT
dc.subject	FINANCIAL ACCOUNTS
dc.subject	FINANCIAL CONSTRAINTS
dc.subject	FINANCIAL CRISIS
dc.subject	FINANCIAL DISTRESS
dc.subject	FINANCIAL INDICATORS
dc.subject	FINANCIAL INSTITUTIONS
dc.subject	FINANCIAL MANAGEMENT
dc.subject	FINANCIAL MARKET
dc.subject	FINANCIAL MARKETS
dc.subject	FINANCIAL PROBLEMS
dc.subject	FINANCIAL RESOURCES
dc.subject	FINANCIAL RISKS
dc.subject	FINANCIAL STABILITY
dc.subject	FINANCIAL SYSTEM
dc.subject	FISCAL DEFICIT
dc.subject	FISCAL DEFICITS
dc.subject	FISCAL DISTRESS
dc.subject	FISCAL POLICIES
dc.subject	FISCAL POLICY
dc.subject	FISCAL REFORMS
dc.subject	FOREIGN EXCHANGE
dc.subject	FOREIGN EXCHANGE RISKS
dc.subject	FRAMEWORK FOR INSOLVENCY
dc.subject	GENERAL DEBT
dc.subject	GOOD FAITH
dc.subject	GOVERNMENT DEFICIT
dc.subject	GOVERNMENT INSOLVENCY
dc.subject	GUARANTEES
dc.subject	HARD BUDGET
dc.subject	HIGH DEBT
dc.subject	IMPLICIT GUARANTEES
dc.subject	INDEPENDENT COURTS
dc.subject	INDIVIDUAL CREDITORS
dc.subject	INFRASTRUCTURE INVESTMENTS
dc.subject	INSOLVENCY
dc.subject	INSOLVENCY FRAMEWORK
dc.subject	INSOLVENCY LAW
dc.subject	INSOLVENCY MECHANISM
dc.subject	INSOLVENCY MECHANISMS
dc.subject	INSOLVENCY PROCEDURE
dc.subject	INSOLVENCY PROCEDURES
dc.subject	INSOLVENCY PROCEEDING
dc.subject	INSOLVENCY PROCEEDINGS
dc.subject	INSOLVENCY SYSTEM
dc.subject	INSOLVENCY TRIGGER
dc.subject	INSOLVENT
dc.subject	INSTITUTIONAL PRINCIPLES
dc.subject	INSTITUTIONAL REFORMS
dc.subject	INSURANCE
dc.subject	INTEREST RATES
dc.subject	INTERNATIONAL BANK
dc.subject	INVESTMENT
dc.subject	INVESTMENTS
dc.subject	JUDGMENT
dc.subject	JUDICIAL MECHANISM
dc.subject	JUDICIAL PROCEDURES
dc.subject	JURISDICTION
dc.subject	LEGAL FRAMEWORK
dc.subject	LEGAL FRAMEWORKS
dc.subject	LENDER
dc.subject	LENDERS
dc.subject	LENDING
dc.subject	LIQUIDATION
dc.subject	LIQUIDATION OF ASSETS
dc.subject	LIQUIDITY
dc.subject	LOCAL GOVERNMENT
dc.subject	LOCAL GOVERNMENT DEBT
dc.subject	LONG-TERM BORROWING
dc.subject	LOSS-MAKING
dc.subject	MAJORITY OF CREDITORS
dc.subject	MANDATES
dc.subject	MARKET FINANCING
dc.subject	MARKET PARTICIPANTS
dc.subject	MISMANAGEMENT
dc.subject	MODEL LAW
dc.subject	MUNICIPAL BANKRUPTCY
dc.subject	MUNICIPAL BANKRUPTCY FRAMEWORK
dc.subject	MUNICIPAL CREDIT
dc.subject	MUNICIPAL CREDIT MARKET
dc.subject	MUNICIPAL DEBT
dc.subject	MUNICIPAL DEBT ADJUSTMENT
dc.subject	MUNICIPAL DEBTORS
dc.subject	MUNICIPAL DEFAULTS
dc.subject	MUNICIPAL INSOLVENCIES
dc.subject	MUNICIPAL INSOLVENCY
dc.subject	NEGOTIATIONS
dc.subject	NEGOTIATIONS BETWEEN DEBTOR
dc.subject	NET DEBT
dc.subject	OUTSIDE BANKRUPTCY
dc.subject	POVERTY
dc.subject	POWER OF CREDITORS
dc.subject	PRIVATE CREDITORS
dc.subject	PRIVATE INVESTORS
dc.subject	PRIVATE LAW
dc.subject	PUBLIC ACCOUNTANT
dc.subject	PUBLIC ACCOUNTANTS
dc.subject	PUBLIC DEBT
dc.subject	PUBLIC DISCLOSURES
dc.subject	PUBLIC INVESTMENT
dc.subject	REGULATORY FRAMEWORK
dc.subject	REGULATORY FRAMEWORKS
dc.subject	REGULATORY REFORMS
dc.subject	REGULATORY SYSTEMS
dc.subject	REMEDIES
dc.subject	REORGANIZATION
dc.subject	REORGANIZATION PLAN
dc.subject	REPAYMENT
dc.subject	REPAYMENT OF CREDITORS
dc.subject	RESTRUCTURING PLAN
dc.subject	RESTRUCTURING PROCESS
dc.subject	RISK OF INSOLVENCY
dc.subject	RISKY DEBT
dc.subject	ROLE OF COURTS
dc.subject	SATISFACTION OF CREDITORS
dc.subject	SETTLEMENT
dc.subject	SETTLEMENT OF CLAIMS
dc.subject	SHARE
dc.subject	SHORT-TERM BORROWING
dc.subject	SOFT BUDGET CONSTRAINTS
dc.subject	SOVEREIGN DEBT
dc.subject	STATE DEBTS
dc.subject	TRANSITION ECONOMIES
dc.subject	TRANSPARENCY LAW
dc.subject	TRUSTEE
dc.subject	UNSECURED CREDITORS
dc.subject	WAGES
dc.subject	WORKOUTS
dc.title	Managing Subnational Credit and Default Risks
dc.type	Publications & Research :: Policy Research Working Paper
dc.coverage	The World Region
dc.coverage	The World Region