Liu, LiliCanuto, Otaviano2012-08-132012-08-132010-05https://hdl.handle.net/10986/10186This note focuses on the impact of the global financial crisis on subnational debt financing. The report approach the following questions: why is subnational debt financing important? What are the impacts of the crisis on the fiscal balance and financing cost of subnational governments (SNGs)? What explains the variations across countries in the ability of SNGs to proactively address the threat of fiscal deterioration? And, equally important, what are the long-term structural challenges facing SNGs in sustainable financing of infrastructure and social services?CC BY 3.0 IGOADVANCED ECONOMIESASSETSAVAILABILITY OF CREDITBALANCE SHEETSBANK LENDINGBANK LOANSBASIS POINTSBENEFICIARIESBONDBOND INSTRUMENTSBOND ISSUANCEBOND ISSUANCESBOND MARKETBONDSBORROWINGBORROWING COSTSBUDGET MANAGEMENTBUDGET PROCESSCAPITAL CONTROLSCAPITAL EXPENDITURESCAPITAL INVESTMENTSCAPITAL MARKETCAPITAL MARKETSCAPITAL OUTFLOWSCENTRAL GOVERNMENTCITIESCLAIMCOLLATERALCOMMODITYCOMMODITY EXPORTSCONSTITUTIONAL POWERSCONTINGENT LIABILITIESCOST OF CAPITALCOST STRUCTURECREDIT LINECREDIT MARKETCREDIT MARKETSCREDIT QUALITIESCREDIT RATINGSCREDITWORTHINESSDEBTDEBT CRISESDEBT FINANCEDEBT FINANCINGDEBT INSTRUMENTSDEBT MARKETDEBT MARKET DEVELOPMENTDEBT OBLIGATIONSDEBT RESTRUCTURINGDEBT SERVICEDEBT SERVICE RATIOSDEBT STOCKDEBTSDEFAULT RISKSDEFAULTSDEFICIT FINANCINGDEPENDENTDEVELOPING COUNTRIESDEVELOPMENT BANKDEVELOPMENT BANKSDISTRICTSDOMESTIC CURRENCYDOMESTIC DEBTDOMESTIC FINANCIAL MARKETSECONOMIC ACTIVITIESECONOMIC DOWNTURNECONOMIC GROWTHECONOMIC POLICYEXCESSIVE BORROWINGEXCHANGE CONTROLSEXPENDITUREEXPENDITURE EFFICIENCYEXPENDITURESFEDERAL COUNTRIESFEDERAL TRANSFERSFEDERALISMFINANCESFINANCIAL AIDFINANCIAL COSTSFINANCIAL CRISISFINANCIAL MARKETFINANCIAL MARKETSFINANCIAL PRODUCTSFINANCIAL STRUCTUREFINANCIERSFINANCING COSTFISCAL ACCOUNTSFISCAL AUTONOMYFISCAL BALANCEFISCAL CONSOLIDATIONFISCAL DECENTRALIZATIONFISCAL DEFICITFISCAL POLICYFISCAL SPACEFISCAL SUSTAINABILITYFISCAL TRANSFERSFISCAL VARIABLESFOREIGN CURRENCYFOREIGN DEBTSFOREIGN MARKETSGENERAL DEBTGENERAL OBLIGATIONGENERAL OBLIGATION BONDSGOVERNORSINCOMEINCOME TAXESINDEBTEDNESSINFLATIONINFRASTRUCTURE FINANCINGINFRASTRUCTURE INVESTMENTSINSOLVENCYINSOLVENCY SYSTEMINTEREST PAYMENTSINTERGOVERNMENTAL FISCAL SYSTEMSINTERNATIONAL RATING AGENCIESLARGE DEBTLIABILITYLIQUIDITYLIQUIDITY POSITIONSLIQUIDITY RISKSLOCAL DEBTLOCAL FINANCEMACROECONOMIC MANAGEMENTMACROECONOMIC POLICIESMACROECONOMIC RISKSMARKET BORROWINGSMARKET INFRASTRUCTUREMATURITIESMATURITYMONOPOLIESMONOPOLYMORAL HAZARDMUNICIPAL FINANCEMUNICIPALITIESNATIONAL TREASURYNET DEBTNONPERFORMING LOANSOUTSTANDING DEBTPOLITICAL POWERPRIVATE CAPITALPRIVATIZATIONPROPERTY TAXESPROVINCESPROVINCIAL BONDSPUBLIC AGENCIESPUBLIC BANKSPUBLIC DEBTPUBLIC ENTITIESPUBLIC FINANCEPUBLIC FINANCE LAWPUBLIC INVESTMENTPUBLIC INVESTMENTSPUBLIC UTILITYREAL ESTATEREAL INTERESTREAL INTEREST RATEREAL INTEREST RATESRECEIPTSRECESSIONREGULATORY FRAMEWORKREGULATORY FRAMEWORKSREINVESTMENTRESERVESRETURNSREVENUE SOURCESREVENUE STRUCTUREREVENUE-RAISING POWERSAVINGSSECURITIESSECURITIES LAWSSOVEREIGN BONDSOVEREIGN RATINGSOVEREIGN RISKSSTATE BUDGETSTATE DEBTSSTRUCTURAL REFORMSSUBNATIONALSUBNATIONAL DEBTSUBNATIONAL ENTITIESSUBNATIONAL FINANCESUBNATIONAL GOVERNMENTSUBNATIONAL GOVERNMENTSSUSTAINABILITY ANALYSISTAXTAX BASETAXATIONTOWNSTRANSACTIONTRANSPARENCYTRANSPARENCY LAWURBANIZATIONVOLATILITYWITHDRAWALYIELD SPREADYIELD SPREADSWorld Bank10.1596/10186