World Bank2017-06-022017-06-022011-09https://hdl.handle.net/10986/26863This report provides an overview of the municipal debt market as it exists and has evolved over the past ten years. It provides an assessment of trends and patterns from both bank and bond sources covering all types of municipal governments. The overall objective of the work is to assess the regulatory environment pertaining to municipal borrowing in the country and to generate recommendations to improve this in a manner which expands municipal access to private debt finance while ensuring that risk is appropriately allocated and properly priced. More particularly, this report: 1) outlines the need and rationale for expanding access to credit finance on part of municipalities in India; 2) provides an overview of the existing municipal debt market; 3) provides an overview of the chief characteristics of the regulatory environment pertaining to municipal borrowing in India, places the existing regulatory system in international context, and outlines a suggested overall direction for reform; and 4) provides specific recommendations to improve the regulatory regimes over which the state and union governments have respective control.en-USCC BY 3.0 IGOACCOUNTINGACCRUAL ACCOUNTINGASSET CLASSIFICATIONASSET VALUESAUCTIONBAILOUTBAILOUTSBALANCE SHEETBALANCE SHEETSBANK ACCOUNTSBANK CREDITBANK LENDINGBANKING INSTITUTIONSBANKING SECTORBANKRUPTCYBANKRUPTCY PROCEDURESBIDSBONDBOND INSTRUMENTSBOND ISSUANCEBOND ISSUANCESBOND ISSUEBOND ISSUESBOND MARKETBORROWERBORROWING CAPACITYBORROWING STRATEGIESBUDGET CONSTRAINTSBUDGETINGCAPITAL GRANTSCAPITAL INVESTMENTCAPITAL INVESTMENTSCAPITAL MARKETCAPITAL MARKETSCASH FLOWCASH FLOWSCASH RESERVECENTRAL BANKCOLLATERALCOMMERCIAL BANKCOMMERCIAL BANKSCOMMERCIAL BORROWINGCOMMERCIAL CONTRACTSCOMMERCIAL LOANSCORPORATE SECURITIESCOUPONCOUPON RATECOUPON RATESCREDIT ENHANCEMENTCREDIT MARKETCREDIT QUALITYCREDITORCREDITOR CLAIMSCREDITWORTHINESSDEBTDEBT DATADEBT INSTRUMENTSDEBT LEVELSDEBT MANAGEMENTDEBT MARKETDEBT MARKET PLAYERSDEBT OBLIGATIONDEBT OBLIGATIONSDEBT RECOVERYDEBT RESTRUCTURINGDEBT SERVICEDEBT SERVICE CAPABILITIESDEBT SERVICINGDEBT-SERVICEDEBTSDEFAULT SITUATIONSDEFAULTSDEMAND FOR CREDITDERIVATIVEDEVELOPMENT BANKDEVELOPMENT FINANCEDISCLOSURE GUIDELINESDISCLOSURE REQUIREMENTSDISCLOSURE STANDARDSDOMESTIC BANKSDOMESTIC CAPITALDOMESTIC CAPITAL MARKETDOMESTIC DEBTDOMESTIC DEBT MARKETECONOMIC LIBERALIZATIONECONOMIC RISKSENFORCEABILITYESCROWEXCHANGE BOARDEXCHANGE COMMISSIONEXCHANGE RATEEXPENDITUREEXPENDITURESFACE VALUEFINANCESFINANCIAL ASSETSFINANCIAL CRISISFINANCIAL INSTITUTIONSFINANCIAL MANAGEMENTFINANCIAL MARKETSFINANCIAL PERFORMANCEFINANCIAL SYSTEMFIXED INTERESTFIXED INTEREST RATEFIXED INTEREST RATESFOREIGN BANKSFREE BONDFREE BONDSGENERAL OBLIGATION BONDSGOVERNMENT BORROWINGGOVERNMENT GUARANTEEGOVERNMENT GUARANTEESGOVERNMENT PAPERGOVERNMENT SECURITIESGOVERNMENT SECURITIES MARKETGOVERNMENT SUPPORTGRANT FUNDINGHOLDINGHUMAN RESOURCESIMMOVABLE PROPERTYIMPLICIT GUARANTEESINDEBTEDNESSINFRASTRUCTURE DEVELOPMENTINFRASTRUCTURE FINANCEINFRASTRUCTURE FINANCINGINFRASTRUCTURE INVESTMENTINFRASTRUCTURE INVESTMENTSINSTITUTIONAL INVESTORSINSURANCE CORPORATIONINTEREST RATESINVESTMENT FUNDSINVESTMENT HORIZONSINVESTMENT REQUIREMENTISSUANCE OF GUARANTEESLEGAL FRAMEWORKLEGAL JURISDICTIONSLEGAL SYSTEMLENDERLENDERSLENDING INSTRUMENTSLENDING REQUIREMENTLEVEL PLAYING FIELDLIABILITYLIFE INSURANCELIFE INSURANCE COMPANYLIQUIDITYLIVING STANDARDSLOANLOAN APPLICATIONSLOAN APPROVALLOAN DEFAULTLOCAL GOVERNMENTLOCAL GOVERNMENTSLOCAL INFRASTRUCTURELONG-TERM DEBTLONG-TERM INVESTMENTMARKET ACCESSMARKET CAPITALIZATIONMARKET DISCIPLINEMARKET FINANCEMARKET PARTICIPANTSMARKET SHAREMORAL HAZARDMORTGAGEMUNICIPAL BONDMUNICIPAL BOND ISSUESMUNICIPAL BOND MARKETMUNICIPAL BONDSMUNICIPAL BORROWERMUNICIPAL BORROWERSMUNICIPAL INVESTMENTMUNICIPAL LOANMUNICIPAL LOANSMUNICIPAL SECURITIESPENSIONPENSION FUNDPHYSICAL ASSETPOLITICAL STABILITYPORTFOLIOPOTENTIAL INVESTORSPRIVATE BANKSPRIVATE PLACEMENTPUBLIC DEBTPUBLIC LENDING INSTITUTIONSPUBLIC SECTOR BANKSPUBLIC SECTOR BORROWINGREFERENDAREGULATORY FRAMEWORKREGULATORY SYSTEMREPAYMENTRESERVERESERVE BANKRESERVESREVOLVING FUNDSRIGHTS OF CREDITORSRISK PROFILESECURITIESSECURITY INTERESTSECURITY INTERESTSSETTLEMENTSHAREHOLDERSHAREHOLDERSSINKING FUNDSOFT LOANSSOVEREIGN LENDINGSTATE BANKSTATE GOVERNMENT SECURITIESSTATE GUARANTEESTATE GUARANTEESSTOCK EXCHANGESSUB-NATIONAL BORROWINGTAXTAX BENEFITTAX BENEFITSTAX EXEMPTIONTAX SYSTEMTAX TREATMENTTIMELY PAYMENTSTRADINGTRANSACTIONTRANSITION COUNTRIESTRANSITION ECONOMIESTRANSPARENCYTREASURYReportWorld Bank10.1596/26863