Liu, LiliCanuto, Otaviano2014-02-122014-02-122013-04https://hdl.handle.net/10986/17023State and local debt and the debt of quasi-public agencies have grown in importance as a result of fiscal decentralization, rapid urbanization, and the increasing role played by private capital. However, with debt comes the risk of insolvency. This note outlines a set of aligned fiscal incentives that should be in place, as well as the design issues to be considered in debt restructuring frameworks. This note also suggests some broad lessons extracted from several country experiences with subnational debt restructuring, insolvency frameworks, and debt market development. This note suggest a range of possible lessons to consider when designing reforms to align fiscal incentives and develop a robust subnational debt framework that can be used to effectively manage the insolvency risks that will inevitably accompany the new dynamism of subnational finance.en-USCC BY 3.0 IGOACCOUNTINGACCOUNTING STANDARDSADMINISTRATIVE CAPACITYAGREEMENT ON DEBT RESOLUTIONASSETSBAILOUTBAILOUTSBALANCE DUEBANK LOANSBANKRUPTBANKRUPTCYBANKRUPTCY CODEBANKSBENEFICIARIESBONDBOND INSTRUMENTSBONDSBORROWERBORROWING COSTBORROWING COSTSBUDGET CONSTRAINTCAPITAL INVESTMENTSCAPITAL MARKETCAPITAL MARKETSCENTRAL BANKCENTRAL GOVERNMENTCITIESCOMMON POOL PROBLEMSCONSTITUTIONAL CHANGECONTINGENT LIABILITIESCONTRACTUAL RIGHTSCONTRACTUAL RIGHTS OF CREDITORSCORRUPTIONCREDIT MARKETSCREDIT RATINGSCREDIT RISKSCREDIT SYSTEMCREDITORSCREDITSCREDITWORTHY BORROWERSCURRENCYDEBTDEBT CRISESDEBT DEFAULTDEBT FINANCEDEBT FINANCINGDEBT INSTRUMENTSDEBT ISSUANCEDEBT MARKETDEBT MARKET DEVELOPMENTDEBT OBLIGATIONSDEBT RESOLUTIONDEBT RESTRUCTURINGDEBT RESTRUCTURING MECHANISMSDEBT SERVICEDEBT SERVICE CAPACITYDEBT STOCKDEBT SUSTAINABILITYDEBT SWAPDEBTORDEBTORSDEBTSDEDICATED REVENUEDEFAULT RATESDEFAULT RISKSDEFAULTSDEPENDENTDEVELOPING COUNTRIESDEVELOPING COUNTRYDISSENTING MINORITY CREDITORSECONOMIC GROWTHECONOMIC POLICYEMERGING MARKETSEXISTING DEBTEXPENDITUREFEDERAL BANKRUPTCYFEDERALISMFINANCESFINANCIAL CRISISFINANCIAL MANAGEMENTFINANCIAL MARKETSFINANCIAL MISMANAGEMENTFINANCIAL SYSTEMFISCAL ADJUSTMENTFISCAL AUTONOMYFISCAL CAPACITYFISCAL DECENTRALIZATIONFISCAL DEFICITSFISCAL DISCIPLINEFISCAL FRAMEWORKFISCAL MANAGEMENTFISCAL POLICIESFISCAL POLICYFISCAL REFORMFISCAL SUSTAINABILITYFISCAL TRANSFERFISCAL TRANSFERSFORECLOSUREGOVERNMENT BONDGOVERNMENT BOND MARKETGOVERNMENT BORROWINGGOVERNMENT CREDITHARD BUDGETINCOME LEVELINDIVIDUAL CREDITORSINFRASTRUCTURE DEVELOPMENTINFRASTRUCTURE FINANCINGINFRASTRUCTURE INVESTMENTINFRASTRUCTURE INVESTMENTSINSOLVENCYINSOLVENCY FRAMEWORKINSOLVENCY FRAMEWORKSINSOLVENCY MECHANISMINSOLVENCY MECHANISMSINSOLVENCY PROCEDURESINSOLVENCY RISKSINSOLVENTINSTITUTIONAL REFORMSINSTRUMENTINTERGOVERNMENTAL FISCAL RELATIONSINTERNATIONAL MARKETSINVESTMENT REQUIREMENTSISSUANCEJUDGMENTJUDICIAL PROCEDURESJUDICIARYJURISDICTIONSLARGE DEBTSLEGAL CONSTRAINTSLEGAL FRAMEWORKLEGAL FRAMEWORKSLEGAL SYSTEMLENDERSLEVEL OF GOVERNMENTLEVERAGELOANLOAN MATURITYLOCAL DEBTLOCAL GOVERNMENTLOCAL GOVERNMENTSLOCAL PUBLIC SERVICESMACROECONOMIC ENVIRONMENTMACROECONOMIC FRAMEWORKMACROECONOMIC STABILITYMACROECONOMIC STABILIZATIONMAJORITY OF CREDITORSMANDATESMARKET ACCESSMARKET DEVELOPMENTMISMANAGEMENTMONETARY FUNDMORAL HAZARDMUNICIPAL BANKRUPTCYMUNICIPALITIESMUNICIPALITYNEGOTIATIONSOPEN MARKETPENSIONSPOLICY MAKERSPRIVATE CAPITALPROVINCESPROVINCIAL DEBTPUBLIC AGENCIESPUBLIC DEBTPUBLIC FINANCEREGULATORY FRAMEWORKRESTRUCTURING PROCESSRETURNSREVENUE SHARINGREVENUE SOURCESRIGHTS OF CREDITORSRISK OF INSOLVENCYROLE OF COURTSSAVINGSSOVEREIGN DEBTSOVEREIGN RISKSSTATE GOVERNMENTSUBNATIONALSUBNATIONAL BOND MARKETSUBNATIONAL DEBTSUBNATIONAL ENTITIESSUBNATIONAL FINANCESUBNATIONAL GOVERNMENTSSUPPLY OF CREDITTAXTAXATIONTRANSACTIONTRANSPARENCYTYPES OF DEBTUSE OF DEBTWAGESWORKOUTS10.1596/17023