Subnational Insolvency : Cross-Country Experiences and Lessons

Subnational insolvency is a reoccurring event in development, as demonstrated by historical and modern episodes of subnational defaults in both developed and developing countries. Insolvency procedures become more important as countries decentraliz...

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Main Authors:	Liu, Lili, Waibel, Michael
Format:	Policy Research Working Paper
Language:	English
Published:	2012
Subjects:	ABSOLUTE PRIORITY RULE ALLOCATION OF CREDIT APR ARREARS ASSETS ASSETS FOR DISTRIBUTION ASSETS IN BANKRUPTCY BAILOUT BAILOUTS BANK FINANCING BANK LOANS BANKING SYSTEM BANKRUPT BANKRUPTCY BANKRUPTCY CODE BANKRUPTCY EXEMPTION BANKRUPTCY PREVENTION BANKRUPTCY PROCEDURES BANKRUPTCY PROCEEDINGS BANKRUPTCY PROTECTION BARGAINING POWER BOND MARKET BOND MARKETS BONDHOLDERS BORROWER BUDGET CONSTRAINT BUDGET CONSTRAINTS CAPITAL MARKET CAPITAL MARKETS CHAPTER 13 CLAIM COLLECTIVE ACTION COLLECTIVE ACTION PROBLEM COMMENCEMENT OF BANKRUPTCY CONTINGENT LIABILITIES CONTRACT LAWS CONTRACTUAL RIGHTS CONTRACTUAL RIGHTS OF CREDITORS CORPORATE BANKRUPTCY CORPORATE BANKRUPTCY LAW CORPORATE INSOLVENCY CORPORATE INSOLVENCY LAW COURT JUDGMENT COURT ORDER COURT SYSTEM CREDIT MARKETS CREDITOR CREDITOR ACTION CREDITOR CLAIMS CREDITOR RIGHTS CREDITORS CREDITS CREDITWORTHINESS DEBT DEBT ADJUSTMENT DEBT ADJUSTMENT LAW DEBT ADJUSTMENT PLAN DEBT ADJUSTMENT PROCESS DEBT ADJUSTMENTS DEBT COLLECTION DEBT CRISES DEBT CRISIS DEBT FINANCING DEBT MARKET DEBT MARKETS DEBT OBLIGATIONS DEBT PAYMENT DEBT PAYMENTS DEBT RESTRUCTURING DEBT RESTRUCTURING MECHANISM DEBT SERVICE DEBT SERVICES DEBTOR DEBTOR-CREDITOR RELATIONSHIP DEBTORS DEFAULTS DEFICIT GRANT DEPENDENT DISSOLUTION DOMESTIC CREDITORS EMERGENCY LOAN ESTATE EVENT OF DEFAULT FEDERAL BANKRUPTCY FINANCIAL CRISIS FINANCIAL DISTRESS FINANCIAL INDICATORS FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL MANAGEMENT FINANCIAL MARKETS FINANCIAL POSITION FINANCIAL REHABILITATION FINANCIAL RELIEF FINANCIAL REPORTING FINANCIAL RESOURCES FINANCIAL RESPONSIBILITY FINANCIAL STABILITY FINANCIAL SYSTEM FINANCIAL TROUBLES FISCAL DEFICIT FISCAL DEFICITS FISCAL DISTRESS FISCAL REFORMS FORECLOSURE FOREIGN CREDITORS FRAMEWORK FOR INSOLVENCY GOVERNMENT BANKRUPTCY GOVERNMENT GUARANTEE GOVERNMENT GUARANTEES GROUP OF CREDITORS HARD BUDGET INDEBTED INDIVIDUAL CREDITOR INDIVIDUAL CREDITORS INSOLVENCY INSOLVENCY FRAMEWORK INSOLVENCY LAW INSOLVENCY LEGISLATION INSOLVENCY MECHANISM INSOLVENCY MECHANISMS INSOLVENCY PROCEDURE INSOLVENCY PROCEDURES INSOLVENCY PROCESS INSOLVENCY REGULATION INSOLVENCY STATUTE INSOLVENCY SYSTEM INSOLVENCY SYSTEMS INSOLVENT INSTITUTIONAL REFORMS INSURANCE INTEREST OF CREDITORS INTEREST RATES INTERNATIONAL CAPITAL INTERNATIONAL TRADE LAW INTRODUCTION OF INSOLVENCY IRRESPONSIBLE BORROWING JUDGE JUDGMENT JUDGMENTS JUDICIAL PROCEDURES JUDICIAL SYSTEM JUDICIARY JURISDICTION LACK OF TRANSPARENCY LEGAL FRAMEWORK LEGAL PROCEDURE LEGAL PROCEDURES LEGAL REMEDIES LEGISLATIVE FRAMEWORK LENDER LENDERS LEVERAGE LIQUIDATION LIQUIDITY LITERATURE ON BANKRUPTCY LOCAL DEBT LOCAL GOVERNMENT DEBT MAJORITY OF CREDITORS MARKET VALUE MECHANISMS FOR INSOLVENCY MISMANAGEMENT MORTGAGES MUNICIPAL ASSETS MUNICIPAL BANKRUPTCY MUNICIPAL BANKRUPTCY CASES MUNICIPAL BORROWING MUNICIPAL DEBT MUNICIPAL DEBT ADJUSTMENT MUNICIPAL DEFAULT MUNICIPAL DEFAULTS MUNICIPAL INSOLVENCY NATIONAL DEBT NEGOTIATION NEGOTIATIONS OUTSIDE BANKRUPTCY PARTIAL IMMUNITY POSSESSION POSSESSION FINANCING POTENTIAL LIABILITIES POWER OF CREDITORS PRIORITY OF CREDITOR PRIVATE CREDITORS PRIVATE INVESTMENTS PRIVATE LAW REGULATORY FRAMEWORK REGULATORY REFORMS RELIEF FROM CREDITORS REMEDY REORGANIZATION REORGANIZATION PROCEDURES REPAYMENT REPAYMENT OF CREDITORS REPAYMENT OF DEBT RESTRUCTURING PLAN RESTRUCTURING PROCESS RISK OF DEBT ROLE OF COURTS SALARY SATISFACTION OF CREDITOR SATISFACTION OF CREDITORS SECURED DEBT SHORT-TERM DEBTS SIMILARLY SITUATED CREDITORS SINGLE DEBT SOVEREIGN DEBT STATE DEBT TRUSTEE UNSECURED CREDITORS UNSECURED DEBT WAGES WORKOUT WORKOUTS
Online Access:	http://documents.worldbank.org/curated/en/2008/01/8972981/subnational-insolvency-cross-country-experiences-lessons http://hdl.handle.net/10986/6384

id	okr-10986-6384
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
topic	ABSOLUTE PRIORITY RULE ALLOCATION OF CREDIT APR ARREARS ASSETS ASSETS FOR DISTRIBUTION ASSETS IN BANKRUPTCY BAILOUT BAILOUTS BANK FINANCING BANK LOANS BANKING SYSTEM BANKRUPT BANKRUPTCY BANKRUPTCY CODE BANKRUPTCY EXEMPTION BANKRUPTCY PREVENTION BANKRUPTCY PROCEDURES BANKRUPTCY PROCEEDINGS BANKRUPTCY PROTECTION BARGAINING POWER BOND MARKET BOND MARKETS BONDHOLDERS BORROWER BUDGET CONSTRAINT BUDGET CONSTRAINTS CAPITAL MARKET CAPITAL MARKETS CHAPTER 13 CLAIM COLLECTIVE ACTION COLLECTIVE ACTION PROBLEM COMMENCEMENT OF BANKRUPTCY CONTINGENT LIABILITIES CONTRACT LAWS CONTRACTUAL RIGHTS CONTRACTUAL RIGHTS OF CREDITORS CORPORATE BANKRUPTCY CORPORATE BANKRUPTCY LAW CORPORATE INSOLVENCY CORPORATE INSOLVENCY LAW COURT JUDGMENT COURT ORDER COURT SYSTEM CREDIT MARKETS CREDITOR CREDITOR ACTION CREDITOR CLAIMS CREDITOR RIGHTS CREDITORS CREDITS CREDITWORTHINESS DEBT DEBT ADJUSTMENT DEBT ADJUSTMENT LAW DEBT ADJUSTMENT PLAN DEBT ADJUSTMENT PROCESS DEBT ADJUSTMENTS DEBT COLLECTION DEBT CRISES DEBT CRISIS DEBT FINANCING DEBT MARKET DEBT MARKETS DEBT OBLIGATIONS DEBT PAYMENT DEBT PAYMENTS DEBT RESTRUCTURING DEBT RESTRUCTURING MECHANISM DEBT SERVICE DEBT SERVICES DEBTOR DEBTOR-CREDITOR RELATIONSHIP DEBTORS DEFAULTS DEFICIT GRANT DEPENDENT DISSOLUTION DOMESTIC CREDITORS EMERGENCY LOAN ESTATE EVENT OF DEFAULT FEDERAL BANKRUPTCY FINANCIAL CRISIS FINANCIAL DISTRESS FINANCIAL INDICATORS FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL MANAGEMENT FINANCIAL MARKETS FINANCIAL POSITION FINANCIAL REHABILITATION FINANCIAL RELIEF FINANCIAL REPORTING FINANCIAL RESOURCES FINANCIAL RESPONSIBILITY FINANCIAL STABILITY FINANCIAL SYSTEM FINANCIAL TROUBLES FISCAL DEFICIT FISCAL DEFICITS FISCAL DISTRESS FISCAL REFORMS FORECLOSURE FOREIGN CREDITORS FRAMEWORK FOR INSOLVENCY GOVERNMENT BANKRUPTCY GOVERNMENT GUARANTEE GOVERNMENT GUARANTEES GROUP OF CREDITORS HARD BUDGET INDEBTED INDIVIDUAL CREDITOR INDIVIDUAL CREDITORS INSOLVENCY INSOLVENCY FRAMEWORK INSOLVENCY LAW INSOLVENCY LEGISLATION INSOLVENCY MECHANISM INSOLVENCY MECHANISMS INSOLVENCY PROCEDURE INSOLVENCY PROCEDURES INSOLVENCY PROCESS INSOLVENCY REGULATION INSOLVENCY STATUTE INSOLVENCY SYSTEM INSOLVENCY SYSTEMS INSOLVENT INSTITUTIONAL REFORMS INSURANCE INTEREST OF CREDITORS INTEREST RATES INTERNATIONAL CAPITAL INTERNATIONAL TRADE LAW INTRODUCTION OF INSOLVENCY IRRESPONSIBLE BORROWING JUDGE JUDGMENT JUDGMENTS JUDICIAL PROCEDURES JUDICIAL SYSTEM JUDICIARY JURISDICTION LACK OF TRANSPARENCY LEGAL FRAMEWORK LEGAL PROCEDURE LEGAL PROCEDURES LEGAL REMEDIES LEGISLATIVE FRAMEWORK LENDER LENDERS LEVERAGE LIQUIDATION LIQUIDITY LITERATURE ON BANKRUPTCY LOCAL DEBT LOCAL GOVERNMENT DEBT MAJORITY OF CREDITORS MARKET VALUE MECHANISMS FOR INSOLVENCY MISMANAGEMENT MORTGAGES MUNICIPAL ASSETS MUNICIPAL BANKRUPTCY MUNICIPAL BANKRUPTCY CASES MUNICIPAL BORROWING MUNICIPAL DEBT MUNICIPAL DEBT ADJUSTMENT MUNICIPAL DEFAULT MUNICIPAL DEFAULTS MUNICIPAL INSOLVENCY NATIONAL DEBT NEGOTIATION NEGOTIATIONS OUTSIDE BANKRUPTCY PARTIAL IMMUNITY POSSESSION POSSESSION FINANCING POTENTIAL LIABILITIES POWER OF CREDITORS PRIORITY OF CREDITOR PRIVATE CREDITORS PRIVATE INVESTMENTS PRIVATE LAW REGULATORY FRAMEWORK REGULATORY REFORMS RELIEF FROM CREDITORS REMEDY REORGANIZATION REORGANIZATION PROCEDURES REPAYMENT REPAYMENT OF CREDITORS REPAYMENT OF DEBT RESTRUCTURING PLAN RESTRUCTURING PROCESS RISK OF DEBT ROLE OF COURTS SALARY SATISFACTION OF CREDITOR SATISFACTION OF CREDITORS SECURED DEBT SHORT-TERM DEBTS SIMILARLY SITUATED CREDITORS SINGLE DEBT SOVEREIGN DEBT STATE DEBT TRUSTEE UNSECURED CREDITORS UNSECURED DEBT WAGES WORKOUT WORKOUTS
spellingShingle	ABSOLUTE PRIORITY RULE ALLOCATION OF CREDIT APR ARREARS ASSETS ASSETS FOR DISTRIBUTION ASSETS IN BANKRUPTCY BAILOUT BAILOUTS BANK FINANCING BANK LOANS BANKING SYSTEM BANKRUPT BANKRUPTCY BANKRUPTCY CODE BANKRUPTCY EXEMPTION BANKRUPTCY PREVENTION BANKRUPTCY PROCEDURES BANKRUPTCY PROCEEDINGS BANKRUPTCY PROTECTION BARGAINING POWER BOND MARKET BOND MARKETS BONDHOLDERS BORROWER BUDGET CONSTRAINT BUDGET CONSTRAINTS CAPITAL MARKET CAPITAL MARKETS CHAPTER 13 CLAIM COLLECTIVE ACTION COLLECTIVE ACTION PROBLEM COMMENCEMENT OF BANKRUPTCY CONTINGENT LIABILITIES CONTRACT LAWS CONTRACTUAL RIGHTS CONTRACTUAL RIGHTS OF CREDITORS CORPORATE BANKRUPTCY CORPORATE BANKRUPTCY LAW CORPORATE INSOLVENCY CORPORATE INSOLVENCY LAW COURT JUDGMENT COURT ORDER COURT SYSTEM CREDIT MARKETS CREDITOR CREDITOR ACTION CREDITOR CLAIMS CREDITOR RIGHTS CREDITORS CREDITS CREDITWORTHINESS DEBT DEBT ADJUSTMENT DEBT ADJUSTMENT LAW DEBT ADJUSTMENT PLAN DEBT ADJUSTMENT PROCESS DEBT ADJUSTMENTS DEBT COLLECTION DEBT CRISES DEBT CRISIS DEBT FINANCING DEBT MARKET DEBT MARKETS DEBT OBLIGATIONS DEBT PAYMENT DEBT PAYMENTS DEBT RESTRUCTURING DEBT RESTRUCTURING MECHANISM DEBT SERVICE DEBT SERVICES DEBTOR DEBTOR-CREDITOR RELATIONSHIP DEBTORS DEFAULTS DEFICIT GRANT DEPENDENT DISSOLUTION DOMESTIC CREDITORS EMERGENCY LOAN ESTATE EVENT OF DEFAULT FEDERAL BANKRUPTCY FINANCIAL CRISIS FINANCIAL DISTRESS FINANCIAL INDICATORS FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL MANAGEMENT FINANCIAL MARKETS FINANCIAL POSITION FINANCIAL REHABILITATION FINANCIAL RELIEF FINANCIAL REPORTING FINANCIAL RESOURCES FINANCIAL RESPONSIBILITY FINANCIAL STABILITY FINANCIAL SYSTEM FINANCIAL TROUBLES FISCAL DEFICIT FISCAL DEFICITS FISCAL DISTRESS FISCAL REFORMS FORECLOSURE FOREIGN CREDITORS FRAMEWORK FOR INSOLVENCY GOVERNMENT BANKRUPTCY GOVERNMENT GUARANTEE GOVERNMENT GUARANTEES GROUP OF CREDITORS HARD BUDGET INDEBTED INDIVIDUAL CREDITOR INDIVIDUAL CREDITORS INSOLVENCY INSOLVENCY FRAMEWORK INSOLVENCY LAW INSOLVENCY LEGISLATION INSOLVENCY MECHANISM INSOLVENCY MECHANISMS INSOLVENCY PROCEDURE INSOLVENCY PROCEDURES INSOLVENCY PROCESS INSOLVENCY REGULATION INSOLVENCY STATUTE INSOLVENCY SYSTEM INSOLVENCY SYSTEMS INSOLVENT INSTITUTIONAL REFORMS INSURANCE INTEREST OF CREDITORS INTEREST RATES INTERNATIONAL CAPITAL INTERNATIONAL TRADE LAW INTRODUCTION OF INSOLVENCY IRRESPONSIBLE BORROWING JUDGE JUDGMENT JUDGMENTS JUDICIAL PROCEDURES JUDICIAL SYSTEM JUDICIARY JURISDICTION LACK OF TRANSPARENCY LEGAL FRAMEWORK LEGAL PROCEDURE LEGAL PROCEDURES LEGAL REMEDIES LEGISLATIVE FRAMEWORK LENDER LENDERS LEVERAGE LIQUIDATION LIQUIDITY LITERATURE ON BANKRUPTCY LOCAL DEBT LOCAL GOVERNMENT DEBT MAJORITY OF CREDITORS MARKET VALUE MECHANISMS FOR INSOLVENCY MISMANAGEMENT MORTGAGES MUNICIPAL ASSETS MUNICIPAL BANKRUPTCY MUNICIPAL BANKRUPTCY CASES MUNICIPAL BORROWING MUNICIPAL DEBT MUNICIPAL DEBT ADJUSTMENT MUNICIPAL DEFAULT MUNICIPAL DEFAULTS MUNICIPAL INSOLVENCY NATIONAL DEBT NEGOTIATION NEGOTIATIONS OUTSIDE BANKRUPTCY PARTIAL IMMUNITY POSSESSION POSSESSION FINANCING POTENTIAL LIABILITIES POWER OF CREDITORS PRIORITY OF CREDITOR PRIVATE CREDITORS PRIVATE INVESTMENTS PRIVATE LAW REGULATORY FRAMEWORK REGULATORY REFORMS RELIEF FROM CREDITORS REMEDY REORGANIZATION REORGANIZATION PROCEDURES REPAYMENT REPAYMENT OF CREDITORS REPAYMENT OF DEBT RESTRUCTURING PLAN RESTRUCTURING PROCESS RISK OF DEBT ROLE OF COURTS SALARY SATISFACTION OF CREDITOR SATISFACTION OF CREDITORS SECURED DEBT SHORT-TERM DEBTS SIMILARLY SITUATED CREDITORS SINGLE DEBT SOVEREIGN DEBT STATE DEBT TRUSTEE UNSECURED CREDITORS UNSECURED DEBT WAGES WORKOUT WORKOUTS Liu, Lili Waibel, Michael Subnational Insolvency : Cross-Country Experiences and Lessons
relation	Policy Research Working Paper; No. 4496
description	Subnational insolvency is a reoccurring event in development, as demonstrated by historical and modern episodes of subnational defaults in both developed and developing countries. Insolvency procedures become more important as countries decentralize expenditure, taxation, and borrowing, and broaden subnational credit markets. As the first cross-country survey of procedures to resolve subnational financial distress, this paper has particular relevance for decentralizing countries. The authors explain central features and variations of subnational insolvency mechanisms across countries. They identify judicial, administrative, and hybrid procedures, and show how entry point and political factors drive their design. Like private insolvency law, subnational insolvency procedures predictably allocate default risk, while providing breathing space for orderly debt restructuring and fiscal adjustment. Policymakers' desire to mitigate the tension between creditor rights and the need to maintain essential public services, to strengthen ex ante fiscal rules, and to harden subnational budget constraints are motivations specific to the public sector.
format	Publications & Research :: Policy Research Working Paper
author	Liu, Lili Waibel, Michael
author_facet	Liu, Lili Waibel, Michael
author_sort	Liu, Lili
title	Subnational Insolvency : Cross-Country Experiences and Lessons
title_short	Subnational Insolvency : Cross-Country Experiences and Lessons
title_full	Subnational Insolvency : Cross-Country Experiences and Lessons
title_fullStr	Subnational Insolvency : Cross-Country Experiences and Lessons
title_full_unstemmed	Subnational Insolvency : Cross-Country Experiences and Lessons
title_sort	subnational insolvency : cross-country experiences and lessons
publishDate	2012
url	http://documents.worldbank.org/curated/en/2008/01/8972981/subnational-insolvency-cross-country-experiences-lessons http://hdl.handle.net/10986/6384
_version_	1764400261568135168
spelling	okr-10986-63842021-04-23T14:02:31Z Subnational Insolvency : Cross-Country Experiences and Lessons Liu, Lili Waibel, Michael ABSOLUTE PRIORITY RULE ALLOCATION OF CREDIT APR ARREARS ASSETS ASSETS FOR DISTRIBUTION ASSETS IN BANKRUPTCY BAILOUT BAILOUTS BANK FINANCING BANK LOANS BANKING SYSTEM BANKRUPT BANKRUPTCY BANKRUPTCY CODE BANKRUPTCY EXEMPTION BANKRUPTCY PREVENTION BANKRUPTCY PROCEDURES BANKRUPTCY PROCEEDINGS BANKRUPTCY PROTECTION BARGAINING POWER BOND MARKET BOND MARKETS BONDHOLDERS BORROWER BUDGET CONSTRAINT BUDGET CONSTRAINTS CAPITAL MARKET CAPITAL MARKETS CHAPTER 13 CLAIM COLLECTIVE ACTION COLLECTIVE ACTION PROBLEM COMMENCEMENT OF BANKRUPTCY CONTINGENT LIABILITIES CONTRACT LAWS CONTRACTUAL RIGHTS CONTRACTUAL RIGHTS OF CREDITORS CORPORATE BANKRUPTCY CORPORATE BANKRUPTCY LAW CORPORATE INSOLVENCY CORPORATE INSOLVENCY LAW COURT JUDGMENT COURT ORDER COURT SYSTEM CREDIT MARKETS CREDITOR CREDITOR ACTION CREDITOR CLAIMS CREDITOR RIGHTS CREDITORS CREDITS CREDITWORTHINESS DEBT DEBT ADJUSTMENT DEBT ADJUSTMENT LAW DEBT ADJUSTMENT PLAN DEBT ADJUSTMENT PROCESS DEBT ADJUSTMENTS DEBT COLLECTION DEBT CRISES DEBT CRISIS DEBT FINANCING DEBT MARKET DEBT MARKETS DEBT OBLIGATIONS DEBT PAYMENT DEBT PAYMENTS DEBT RESTRUCTURING DEBT RESTRUCTURING MECHANISM DEBT SERVICE DEBT SERVICES DEBTOR DEBTOR-CREDITOR RELATIONSHIP DEBTORS DEFAULTS DEFICIT GRANT DEPENDENT DISSOLUTION DOMESTIC CREDITORS EMERGENCY LOAN ESTATE EVENT OF DEFAULT FEDERAL BANKRUPTCY FINANCIAL CRISIS FINANCIAL DISTRESS FINANCIAL INDICATORS FINANCIAL INSTITUTION FINANCIAL INSTITUTIONS FINANCIAL MANAGEMENT FINANCIAL MARKETS FINANCIAL POSITION FINANCIAL REHABILITATION FINANCIAL RELIEF FINANCIAL REPORTING FINANCIAL RESOURCES FINANCIAL RESPONSIBILITY FINANCIAL STABILITY FINANCIAL SYSTEM FINANCIAL TROUBLES FISCAL DEFICIT FISCAL DEFICITS FISCAL DISTRESS FISCAL REFORMS FORECLOSURE FOREIGN CREDITORS FRAMEWORK FOR INSOLVENCY GOVERNMENT BANKRUPTCY GOVERNMENT GUARANTEE GOVERNMENT GUARANTEES GROUP OF CREDITORS HARD BUDGET INDEBTED INDIVIDUAL CREDITOR INDIVIDUAL CREDITORS INSOLVENCY INSOLVENCY FRAMEWORK INSOLVENCY LAW INSOLVENCY LEGISLATION INSOLVENCY MECHANISM INSOLVENCY MECHANISMS INSOLVENCY PROCEDURE INSOLVENCY PROCEDURES INSOLVENCY PROCESS INSOLVENCY REGULATION INSOLVENCY STATUTE INSOLVENCY SYSTEM INSOLVENCY SYSTEMS INSOLVENT INSTITUTIONAL REFORMS INSURANCE INTEREST OF CREDITORS INTEREST RATES INTERNATIONAL CAPITAL INTERNATIONAL TRADE LAW INTRODUCTION OF INSOLVENCY IRRESPONSIBLE BORROWING JUDGE JUDGMENT JUDGMENTS JUDICIAL PROCEDURES JUDICIAL SYSTEM JUDICIARY JURISDICTION LACK OF TRANSPARENCY LEGAL FRAMEWORK LEGAL PROCEDURE LEGAL PROCEDURES LEGAL REMEDIES LEGISLATIVE FRAMEWORK LENDER LENDERS LEVERAGE LIQUIDATION LIQUIDITY LITERATURE ON BANKRUPTCY LOCAL DEBT LOCAL GOVERNMENT DEBT MAJORITY OF CREDITORS MARKET VALUE MECHANISMS FOR INSOLVENCY MISMANAGEMENT MORTGAGES MUNICIPAL ASSETS MUNICIPAL BANKRUPTCY MUNICIPAL BANKRUPTCY CASES MUNICIPAL BORROWING MUNICIPAL DEBT MUNICIPAL DEBT ADJUSTMENT MUNICIPAL DEFAULT MUNICIPAL DEFAULTS MUNICIPAL INSOLVENCY NATIONAL DEBT NEGOTIATION NEGOTIATIONS OUTSIDE BANKRUPTCY PARTIAL IMMUNITY POSSESSION POSSESSION FINANCING POTENTIAL LIABILITIES POWER OF CREDITORS PRIORITY OF CREDITOR PRIVATE CREDITORS PRIVATE INVESTMENTS PRIVATE LAW REGULATORY FRAMEWORK REGULATORY REFORMS RELIEF FROM CREDITORS REMEDY REORGANIZATION REORGANIZATION PROCEDURES REPAYMENT REPAYMENT OF CREDITORS REPAYMENT OF DEBT RESTRUCTURING PLAN RESTRUCTURING PROCESS RISK OF DEBT ROLE OF COURTS SALARY SATISFACTION OF CREDITOR SATISFACTION OF CREDITORS SECURED DEBT SHORT-TERM DEBTS SIMILARLY SITUATED CREDITORS SINGLE DEBT SOVEREIGN DEBT STATE DEBT TRUSTEE UNSECURED CREDITORS UNSECURED DEBT WAGES WORKOUT WORKOUTS Subnational insolvency is a reoccurring event in development, as demonstrated by historical and modern episodes of subnational defaults in both developed and developing countries. Insolvency procedures become more important as countries decentralize expenditure, taxation, and borrowing, and broaden subnational credit markets. As the first cross-country survey of procedures to resolve subnational financial distress, this paper has particular relevance for decentralizing countries. The authors explain central features and variations of subnational insolvency mechanisms across countries. They identify judicial, administrative, and hybrid procedures, and show how entry point and political factors drive their design. Like private insolvency law, subnational insolvency procedures predictably allocate default risk, while providing breathing space for orderly debt restructuring and fiscal adjustment. Policymakers' desire to mitigate the tension between creditor rights and the need to maintain essential public services, to strengthen ex ante fiscal rules, and to harden subnational budget constraints are motivations specific to the public sector. 2012-05-24T20:01:22Z 2012-05-24T20:01:22Z 2008-01 http://documents.worldbank.org/curated/en/2008/01/8972981/subnational-insolvency-cross-country-experiences-lessons World Bank, Washington, DC http://hdl.handle.net/10986/6384 English Policy Research Working Paper; No. 4496 CC BY 3.0 IGO http://creativecommons.org/licenses/by/3.0/igo/ World Bank Publications & Research :: Policy Research Working Paper Publications & Research

Subnational Insolvency : Cross-Country Experiences and Lessons

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