Publication: Enhancing the Creditworthiness of Municipal Bonds : Innovations from Mexico
Date
2008-08
ISSN
Published
2008-08
Author(s)
Abstract
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.
Citation
“Leigland, James; Mandri-Perrott, Cledan. 2008. Enhancing the Creditworthiness of Municipal Bonds : Innovations from Mexico. Gridlines; No. 39. © World Bank, Washington, DC. http://openknowledge.worldbank.org/entities/publication/ada5cdb9-a045-586f-9d29-7c53333b1b0c License: CC BY 3.0 IGO.”