Publication: Enhancing the Creditworthiness of Municipal Bonds : Innovations from Mexico
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2008-08
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2012-08-13
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Leigland, James
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In 2001-03 the municipal bond market in Mexico was among the most active in the developing world. Government officials had found a way to dramatically enhance the creditworthiness of local government debt without using sovereign guarantees. The technique, adapted in part from private sector 'future flow' financing deals, enabled a state or local government to earn significantly higher credit ratings for bond issues than for its normal balance sheet debt. Many other developing countries have turned to Mexico as a source of innovation that may have application in their own markets.
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“Leigland, James; Mandri-Perrott, Cledan. 2008. Enhancing the Creditworthiness of Municipal Bonds : Innovations from Mexico. Gridlines; No. 39. © World Bank. http://hdl.handle.net/10986/10598 License: CC BY 3.0 IGO.”
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