Building Subnational Debt Markets in Developing and Transition Economies : A Framework for Analysis, Policy Reform, and Assistance Strategy
Subnational debt markets can be a powerful force in a country's development. Through delegated monitoring by financial intermediaries and through debt placed directly with investors, subnational debt markets account for about 5 percent of GDP...
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| Format: | Policy Research Working Paper |
| Language: | English en_US |
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World Bank, Washington, DC
2014
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| Online Access: | http://documents.worldbank.org/curated/en/2000/05/437672/building-subnational-debt-markets-developing-transition-economies-framework-analysis-policy-reform-assistance-strategy http://hdl.handle.net/10986/18844 |
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okr-10986-18844 |
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| recordtype |
oai_dc |
| repository_type |
Digital Repository |
| institution_category |
Foreign Institution |
| institution |
Digital Repositories |
| building |
World Bank Open Knowledge Repository |
| collection |
World Bank |
| language |
English en_US |
| topic |
ACCOUNTING ADVERSE SELECTION AGENCY PROBLEMS ALLOCATION CRITERIA ALLOCATION OF CAPITAL AUTHORITY AUTONOMY BAILOUTS BANKING SECTOR BANKRUPTCY BANKRUPTCY LEGISLATION BLOCK GRANTS BOND ISSUES BOND MARKET BOND MARKETS BONDS CAPITAL ADEQUACY CAPITAL GRANTS CENTRAL GOVERNMENT CENTRAL GOVERNMENTS CITIZENS COALITIONS COMMERCIAL BANKS COMMERCIAL BORROWING COMMERCIAL CREDIT COMMERCIAL DEBT CONSTITUENCIES CREDIT LINES CREDIT RISKS CREDITWORTHINESS DEBT DEBT BURDEN DEBT MARKETS DEBT OBLIGATIONS DEBT REPAYMENT DEBT SERVICE DEBT SERVICE PAYMENTS DEBT SERVICING DEBTS DECENTRALIZATION DECENTRALIZATION SYSTEM DEFAULTS DEPOSITS DISTRICTS DOMESTIC DEBT ECONOMIC CRITERIA EMERGING MARKETS EXPENDITURE FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIARIES FINANCIAL MANAGEMENT FINANCIAL MARKETS FINANCIAL SECTOR FINANCIAL SECTORS FINANCIAL SYSTEM FINANCIAL SYSTEMS FINANCIAL VIABILITY FISCAL FISCAL DECENTRALIZATION FISCAL POLICIES FISCAL REVENUES FOREIGN BANKS GDP GENERAL OBLIGATION BONDS GOVERNMENT ASSISTANCE GOVERNMENT BUDGETS GOVERNMENT DEBT GOVERNMENT INTERVENTION GOVERNMENT MINISTRIES GOVERNMENT RESOURCES GOVERNMENT STRUCTURES GRANT ALLOCATION HARD BUDGET CONSTRAINTS HUMAN RESOURCES INSURANCE INTEREST RATES INTERNATIONAL BANKS LACK OF CLARITY LACK OF TRANSPARENCY LAWS LEGALITY LEGISLATION LEVEL PLAYING FIELD LOAN GUARANTEES LOCAL AUTHORITIES LOCAL CAPACITY BUILDING LOCAL GOVERNMENT LOCAL GOVERNMENT BORROWING LOCAL GOVERNMENT BUDGETS LOCAL GOVERNMENT FINANCE LOCAL GOVERNMENTS MANDATED EXPENDITURES MARKET DISCIPLINE MATCHING GRANTS MATURITIES MDF MINISTRY OF FINANCE MORAL HAZARD MUNICIPAL BONDS MUNICIPAL DEVELOPMENT MUNICIPAL FINANCE MUNICIPAL INVESTMENTS MUNICIPALITIES NATIONAL BUDGETS NATIONAL DEBT NATIONAL GOVERNMENTS PENSIONS POLITICAL AUTHORITY PREFERENTIAL TREATMENT PRESIDENCY PRIVATE BANKS PRIVATE SECTOR PRIVATE SECTOR PARTICIPATION PRIVATIZATION PROBLEM LOANS PROVISIONS PUBLIC DEBT RECURRENT EXPENDITURES REDEMPTION REFERENDUM REGULATORY FRAMEWORK REVENUE BONDS SOCIAL SECURITY SOFT BUDGET CONSTRAINTS STATE AGENCY STATE BUDGET STATE CONTROL STATE FUNDS STATE SUBSIDIES SUPERVISORY FRAMEWORK TAX TAX REVENUES TRANSITION ECONOMIES TRANSPARENCY TREASURY URBANIZATION UTILITIES ACCESS TO CREDIT CAPACITY BUILDING |
| spellingShingle |
ACCOUNTING ADVERSE SELECTION AGENCY PROBLEMS ALLOCATION CRITERIA ALLOCATION OF CAPITAL AUTHORITY AUTONOMY BAILOUTS BANKING SECTOR BANKRUPTCY BANKRUPTCY LEGISLATION BLOCK GRANTS BOND ISSUES BOND MARKET BOND MARKETS BONDS CAPITAL ADEQUACY CAPITAL GRANTS CENTRAL GOVERNMENT CENTRAL GOVERNMENTS CITIZENS COALITIONS COMMERCIAL BANKS COMMERCIAL BORROWING COMMERCIAL CREDIT COMMERCIAL DEBT CONSTITUENCIES CREDIT LINES CREDIT RISKS CREDITWORTHINESS DEBT DEBT BURDEN DEBT MARKETS DEBT OBLIGATIONS DEBT REPAYMENT DEBT SERVICE DEBT SERVICE PAYMENTS DEBT SERVICING DEBTS DECENTRALIZATION DECENTRALIZATION SYSTEM DEFAULTS DEPOSITS DISTRICTS DOMESTIC DEBT ECONOMIC CRITERIA EMERGING MARKETS EXPENDITURE FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIARIES FINANCIAL MANAGEMENT FINANCIAL MARKETS FINANCIAL SECTOR FINANCIAL SECTORS FINANCIAL SYSTEM FINANCIAL SYSTEMS FINANCIAL VIABILITY FISCAL FISCAL DECENTRALIZATION FISCAL POLICIES FISCAL REVENUES FOREIGN BANKS GDP GENERAL OBLIGATION BONDS GOVERNMENT ASSISTANCE GOVERNMENT BUDGETS GOVERNMENT DEBT GOVERNMENT INTERVENTION GOVERNMENT MINISTRIES GOVERNMENT RESOURCES GOVERNMENT STRUCTURES GRANT ALLOCATION HARD BUDGET CONSTRAINTS HUMAN RESOURCES INSURANCE INTEREST RATES INTERNATIONAL BANKS LACK OF CLARITY LACK OF TRANSPARENCY LAWS LEGALITY LEGISLATION LEVEL PLAYING FIELD LOAN GUARANTEES LOCAL AUTHORITIES LOCAL CAPACITY BUILDING LOCAL GOVERNMENT LOCAL GOVERNMENT BORROWING LOCAL GOVERNMENT BUDGETS LOCAL GOVERNMENT FINANCE LOCAL GOVERNMENTS MANDATED EXPENDITURES MARKET DISCIPLINE MATCHING GRANTS MATURITIES MDF MINISTRY OF FINANCE MORAL HAZARD MUNICIPAL BONDS MUNICIPAL DEVELOPMENT MUNICIPAL FINANCE MUNICIPAL INVESTMENTS MUNICIPALITIES NATIONAL BUDGETS NATIONAL DEBT NATIONAL GOVERNMENTS PENSIONS POLITICAL AUTHORITY PREFERENTIAL TREATMENT PRESIDENCY PRIVATE BANKS PRIVATE SECTOR PRIVATE SECTOR PARTICIPATION PRIVATIZATION PROBLEM LOANS PROVISIONS PUBLIC DEBT RECURRENT EXPENDITURES REDEMPTION REFERENDUM REGULATORY FRAMEWORK REVENUE BONDS SOCIAL SECURITY SOFT BUDGET CONSTRAINTS STATE AGENCY STATE BUDGET STATE CONTROL STATE FUNDS STATE SUBSIDIES SUPERVISORY FRAMEWORK TAX TAX REVENUES TRANSITION ECONOMIES TRANSPARENCY TREASURY URBANIZATION UTILITIES ACCESS TO CREDIT CAPACITY BUILDING Noel, Michel Building Subnational Debt Markets in Developing and Transition Economies : A Framework for Analysis, Policy Reform, and Assistance Strategy |
| geographic_facet |
Europe and Central Asia |
| relation |
Policy Research Working Paper;No. 2339 |
| description |
Subnational debt markets can be a
powerful force in a country's development. Through
delegated monitoring by financial intermediaries and through
debt placed directly with investors, subnational debt
markets account for about 5 percent of GDP in Argentina and
Brazil. But they remain embryonic in most developing and
transition economies. To resolve a potential clash between
the increased financing needs of subnational entities and
the limited development of domestic subnational debt
markets, it is critical to support the orderly, efficient
emergence of such debt markets. As a framework for policy
reform, the following steps (mirroring typical weaknesses)
are prerequisites for developing a country's
subnational debt market: reducing moral hazard, improving
market transparency, strengthening market governance,
establishing a level playing field, and developing local
capacity for accounting, budgeting, and financial
management. In countries where the government shows a clear
commitment to market development, says the author, the World
Bank should support the framework needed for policy-based
operations that establish hard budget constraints. In doing
so, the Bank should concentrate on 1) supporting national
and local capacity building in those areas essential for
developing a subnational debt market; and 2) financing
specific subnational projects with strictly nonrecourse
loans. At the same time, the Bank should offer a variety of
lending and guarantee instruments that encourage private
financing for investments by subnational entities-including,
for example, equity participation in (or lines of credit or
partial credit guarantees to) financial intermediaries
specializing in subnational investment finance or in funds
for financing local infrastructure. |
| format |
Publications & Research :: Policy Research Working Paper |
| author |
Noel, Michel |
| author_facet |
Noel, Michel |
| author_sort |
Noel, Michel |
| title |
Building Subnational Debt Markets in Developing and Transition Economies : A Framework for Analysis, Policy Reform, and Assistance Strategy |
| title_short |
Building Subnational Debt Markets in Developing and Transition Economies : A Framework for Analysis, Policy Reform, and Assistance Strategy |
| title_full |
Building Subnational Debt Markets in Developing and Transition Economies : A Framework for Analysis, Policy Reform, and Assistance Strategy |
| title_fullStr |
Building Subnational Debt Markets in Developing and Transition Economies : A Framework for Analysis, Policy Reform, and Assistance Strategy |
| title_full_unstemmed |
Building Subnational Debt Markets in Developing and Transition Economies : A Framework for Analysis, Policy Reform, and Assistance Strategy |
| title_sort |
building subnational debt markets in developing and transition economies : a framework for analysis, policy reform, and assistance strategy |
| publisher |
World Bank, Washington, DC |
| publishDate |
2014 |
| url |
http://documents.worldbank.org/curated/en/2000/05/437672/building-subnational-debt-markets-developing-transition-economies-framework-analysis-policy-reform-assistance-strategy http://hdl.handle.net/10986/18844 |
| _version_ |
1764441607243825152 |
| spelling |
okr-10986-188442021-04-23T14:03:46Z Building Subnational Debt Markets in Developing and Transition Economies : A Framework for Analysis, Policy Reform, and Assistance Strategy Noel, Michel ACCOUNTING ADVERSE SELECTION AGENCY PROBLEMS ALLOCATION CRITERIA ALLOCATION OF CAPITAL AUTHORITY AUTONOMY BAILOUTS BANKING SECTOR BANKRUPTCY BANKRUPTCY LEGISLATION BLOCK GRANTS BOND ISSUES BOND MARKET BOND MARKETS BONDS CAPITAL ADEQUACY CAPITAL GRANTS CENTRAL GOVERNMENT CENTRAL GOVERNMENTS CITIZENS COALITIONS COMMERCIAL BANKS COMMERCIAL BORROWING COMMERCIAL CREDIT COMMERCIAL DEBT CONSTITUENCIES CREDIT LINES CREDIT RISKS CREDITWORTHINESS DEBT DEBT BURDEN DEBT MARKETS DEBT OBLIGATIONS DEBT REPAYMENT DEBT SERVICE DEBT SERVICE PAYMENTS DEBT SERVICING DEBTS DECENTRALIZATION DECENTRALIZATION SYSTEM DEFAULTS DEPOSITS DISTRICTS DOMESTIC DEBT ECONOMIC CRITERIA EMERGING MARKETS EXPENDITURE FINANCIAL INSTITUTIONS FINANCIAL INTERMEDIARIES FINANCIAL MANAGEMENT FINANCIAL MARKETS FINANCIAL SECTOR FINANCIAL SECTORS FINANCIAL SYSTEM FINANCIAL SYSTEMS FINANCIAL VIABILITY FISCAL FISCAL DECENTRALIZATION FISCAL POLICIES FISCAL REVENUES FOREIGN BANKS GDP GENERAL OBLIGATION BONDS GOVERNMENT ASSISTANCE GOVERNMENT BUDGETS GOVERNMENT DEBT GOVERNMENT INTERVENTION GOVERNMENT MINISTRIES GOVERNMENT RESOURCES GOVERNMENT STRUCTURES GRANT ALLOCATION HARD BUDGET CONSTRAINTS HUMAN RESOURCES INSURANCE INTEREST RATES INTERNATIONAL BANKS LACK OF CLARITY LACK OF TRANSPARENCY LAWS LEGALITY LEGISLATION LEVEL PLAYING FIELD LOAN GUARANTEES LOCAL AUTHORITIES LOCAL CAPACITY BUILDING LOCAL GOVERNMENT LOCAL GOVERNMENT BORROWING LOCAL GOVERNMENT BUDGETS LOCAL GOVERNMENT FINANCE LOCAL GOVERNMENTS MANDATED EXPENDITURES MARKET DISCIPLINE MATCHING GRANTS MATURITIES MDF MINISTRY OF FINANCE MORAL HAZARD MUNICIPAL BONDS MUNICIPAL DEVELOPMENT MUNICIPAL FINANCE MUNICIPAL INVESTMENTS MUNICIPALITIES NATIONAL BUDGETS NATIONAL DEBT NATIONAL GOVERNMENTS PENSIONS POLITICAL AUTHORITY PREFERENTIAL TREATMENT PRESIDENCY PRIVATE BANKS PRIVATE SECTOR PRIVATE SECTOR PARTICIPATION PRIVATIZATION PROBLEM LOANS PROVISIONS PUBLIC DEBT RECURRENT EXPENDITURES REDEMPTION REFERENDUM REGULATORY FRAMEWORK REVENUE BONDS SOCIAL SECURITY SOFT BUDGET CONSTRAINTS STATE AGENCY STATE BUDGET STATE CONTROL STATE FUNDS STATE SUBSIDIES SUPERVISORY FRAMEWORK TAX TAX REVENUES TRANSITION ECONOMIES TRANSPARENCY TREASURY URBANIZATION UTILITIES ACCESS TO CREDIT CAPACITY BUILDING Subnational debt markets can be a powerful force in a country's development. Through delegated monitoring by financial intermediaries and through debt placed directly with investors, subnational debt markets account for about 5 percent of GDP in Argentina and Brazil. But they remain embryonic in most developing and transition economies. To resolve a potential clash between the increased financing needs of subnational entities and the limited development of domestic subnational debt markets, it is critical to support the orderly, efficient emergence of such debt markets. As a framework for policy reform, the following steps (mirroring typical weaknesses) are prerequisites for developing a country's subnational debt market: reducing moral hazard, improving market transparency, strengthening market governance, establishing a level playing field, and developing local capacity for accounting, budgeting, and financial management. In countries where the government shows a clear commitment to market development, says the author, the World Bank should support the framework needed for policy-based operations that establish hard budget constraints. In doing so, the Bank should concentrate on 1) supporting national and local capacity building in those areas essential for developing a subnational debt market; and 2) financing specific subnational projects with strictly nonrecourse loans. At the same time, the Bank should offer a variety of lending and guarantee instruments that encourage private financing for investments by subnational entities-including, for example, equity participation in (or lines of credit or partial credit guarantees to) financial intermediaries specializing in subnational investment finance or in funds for financing local infrastructure. 2014-06-30T18:53:00Z 2014-06-30T18:53:00Z 2000-05 http://documents.worldbank.org/curated/en/2000/05/437672/building-subnational-debt-markets-developing-transition-economies-framework-analysis-policy-reform-assistance-strategy http://hdl.handle.net/10986/18844 English en_US Policy Research Working Paper;No. 2339 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank, Washington, DC Publications & Research :: Policy Research Working Paper Publications & Research Europe and Central Asia |