Leigland, JamesMandri-Perrott, Cledan2012-08-132012-08-132008-08https://hdl.handle.net/10986/10598In 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.CC BY 3.0 IGOACCOUNTABILITYADEQUATE ASSURANCESAFFORDABLE INTEREST RATESBALANCE SHEETBALANCE SHEET DEBTBANK LENDINGBOND ISSUANCESBOND ISSUESBOND SALESBONDHOLDERSBORROWERBORROWINGSCAPITAL MARKETSCAPITALIZATIONCAR LOANSCASE OF DEFAULTCASH FLOWSCENTRAL GOVERNMENTSCOLLATERALCOMMERCIAL BANKSCONTINGENT LIABILITYCREDIT ENHANCEMENTSCREDIT RATINGCREDIT RATING AGENCIESCREDIT RATINGSCREDIT STANDINGCREDIT STRENGTHCREDITORSCREDITWORTHINESSCURRENCYDEBT ISSUANCEDEBT OBLIGATIONSDEBT REPAYMENTDEBT REPAYMENTSDEBT SECURITIESDEBT SERVICEDEBT SERVICE PAYMENTDEBT SERVICE PAYMENTSDEBTSDECENTRALIZATIONDEVELOPING COUNTRIESDEVELOPING COUNTRYDEVELOPMENT BANKECONOMIC GROWTHEMERGING MARKETEMERGING MARKET DEBTEXISTING ASSETSFACE VALUEFINANCESFINANCIAL ADVISORSFINANCIAL AUTONOMYFINANCIAL CRISISFINANCIAL HEALTHFINANCINGSFUTURE DEBTGENERAL OBLIGATIONGENERAL OBLIGATION BORROWINGGENERAL OBLIGATIONSGOVERNMENT DEBTGOVERNMENT EXPENDITUREGOVERNMENT REVENUEHOME MORTGAGESIMPLICIT GUARANTEEIMPLICIT GUARANTEESINFRASTRUCTURE BONDSINTEREST RATESINTERGOVERNMENTAL TRANSFERSINTERNAL CREDIT ENHANCEMENTSINTERNATIONAL CAPITALINTERNATIONAL CAPITAL MARKETSINTERNATIONAL FINANCEINTERNATIONAL SETTLEMENTLENDERSLOANLOAN AGREEMENTSLOAN SIZELOCAL ADMINISTRATIONLOCAL GOVERNMENTLOCAL GOVERNMENT BORROWERLOCAL GOVERNMENT BORROWERSLOCAL GOVERNMENT DEBTLOCAL GOVERNMENT REVENUELOCAL GOVERNMENTSLOW INTEREST RATESMONOPOLYMORAL HAZARDMUNICIPALMUNICIPAL BONDMUNICIPAL BOND ISSUANCEMUNICIPAL BOND ISSUESMUNICIPAL BOND MARKETMUNICIPAL BONDSMUNICIPAL BORROWERSMUNICIPAL BORROWINGMUNICIPAL BUDGETSMUNICIPAL DEBTMUNICIPAL GOVERNMENTSMUNICIPALITIESOUTSTANDING DEBTPAYMENT MECHANISMSPENSIONPENSION FUNDPENSION FUNDSPRIVATE FINANCIAL INSTITUTIONSPRIVATE INFRASTRUCTUREPUBLIC FINANCEPUBLIC-PRIVATE PARTNERSHIPPUBLIC-PRIVATE PARTNERSHIPSRECEIVABLESRESERVERESERVE ACCOUNTSREVENUE BONDSREVENUE INTERCEPTSRISK OF DEFAULTSECURITIESSOVEREIGN DEBTSOVEREIGN GUARANTEESSUBNATIONAL FINANCESUSTAINABLE DEVELOPMENTTAXTAX REVENUESTECHNICAL ASSISTANCETELEPHONE SERVICETRADABLE SECURITIESTRANSACTIONTRANSACTION COSTSTURNOVERURBAN DEVELOPMENTWorld Bank10.1596/10598