World Bank2014-08-192014-08-192008-06-03https://hdl.handle.net/10986/19479The policy note is organized as follows: the first section reviews the local government structure and fiscal system and discusses how it can be improved to better enable local governments to efficiently fulfill their functions. The second section then examines the state of municipal utilities. The third and the final section examines the recent evolution, opportunities and challenges ahead for the development of the sub-national debt market, analyzes key deficiencies and proposes priority reforms in the legal and regulatory framework for local government borrowing, and proposes a strategy to increase the access of sub-national entities to the sub-national debt market, based on a range of technical assistance and financial support instruments carefully attuned to sub-national entities' risk profiles.en-USCC BY 3.0 IGOACCESS TO BANKACCOUNTABILITYACCOUNTINGAUCTIONSBAILOUTBAILOUTSBANK ACCOUNTBANK BORROWINGBANK LENDINGBANKING SECTORBANKING SYSTEMBASIS POINTSBENEFICIARIESBONDBOND ISSUANCEBOND ISSUESBOND RATINGBOND UNDERWRITERSBONDSBUDGET CONSTRAINTBUDGET CONSTRAINTSCADASTRECAPITAL ADEQUACYCAPITAL GRANTCAPITAL GRANT SYSTEMCAPITAL GRANTSCASH FLOWSCENTRAL GOVERNMENT FINANCINGCENTRAL GOVERNMENT GUARANTEECOMMERCIAL BANKSCORPORATE GOVERNANCECREDIT ENHANCEMENTCREDIT GUARANTEECREDIT INSTITUTIONSCREDIT MARKETSCREDIT QUALITYCREDIT RATINGCREDIT RATING AGENCIESCREDIT RATINGSCREDIT RISKCREDITORCREDITORSCREDITWORTHINESSDEBTDEBT FINANCINGDEBT MANAGEMENTDEBT MARKETDEBT OBLIGATIONDEBT OBLIGATIONSDEBT RELIEFDEBT SERVICEDECENTRALIZATIONDEFAULT RATINGDEPOSITDEPOSITSDOMESTIC BANKDOMESTIC BANKINGDOMESTIC CREDITDOMESTIC CURRENCYDOMESTIC MARKETEMERGING MARKETEMERGING MARKET ECONOMIESEUROBONDEXCESS LIQUIDITYEXCHANGE COMMISSIONEXPENDITUREEXPENDITURESFINANCIAL CRISISFINANCIAL INSTITUTIONSFINANCIAL INSTRUMENTSFINANCIAL MANAGEMENTFINANCIAL MANAGEMENT CAPACITYFINANCIAL MARKETFINANCIAL MARKETSFINANCIAL PERFORMANCEFINANCIAL RISKSFINANCIAL STATEMENTSFINANCIAL SUPPORTFINANCING REQUIREMENTSFISCAL CAPACITYFISCAL CONSTRAINTSFIXED COUPONFOREIGN CURRENCYGOVERNMENT BANKRUPTCYGOVERNMENT BANKRUPTCY FRAMEWORKGOVERNMENT BONDGOVERNMENT BORROWINGGOVERNMENT BORROWINGSGOVERNMENT BUDGETGOVERNMENT BUDGETINGGOVERNMENT BUDGETSGOVERNMENT DEBTGOVERNMENT DEBT MARKETGOVERNMENT EXPENDITURESGOVERNMENT GUARANTEEGOVERNMENT POLICYGOVERNMENT REVENUEHOUSEHOLD INCOMEIMPLICIT GUARANTEEINCOME SECURITYINCOME TAXINCOME TAXESINDIVIDUAL LOANSINFRASTRUCTURE INVESTMENTINFRASTRUCTURE INVESTMENTSINSTITUTIONAL INVESTORINSTITUTIONAL INVESTORSINSTRUMENTINTERGOVERNMENTAL RELATIONSINTERGOVERNMENTAL TRANSFERINTERGOVERNMENTAL TRANSFERSINTERNATIONAL BANKSINTERNATIONAL CREDITINTERNATIONAL CREDIT RATINGINTERNATIONAL FINANCIAL INSTITUTIONSINTERNATIONAL RATING AGENCIESINTERNATIONAL RATING AGENCYLEGAL FRAMEWORKLEGAL PROVISIONSLEGISLATIONLENDERSLENDING DECISIONSLEVEL PLAYING FIELDLIABILITYLOANLOAN AGREEMENTLOAN GUARANTEESLOAN MATURITIESLOAN SIZELOCAL ADMINISTRATIONLOCAL CURRENCYLOCAL DEBTLOCAL GOVERNMENTLOCAL GOVERNMENT BORROWINGLOCAL GOVERNMENT ORGANIZATIONLOCAL GOVERNMENTSLOCAL INFRASTRUCTUREMARKET ACCESSMARKET DEVELOPMENTMARKET DISCIPLINEMARKET ECONOMYMARKET MECHANISMSMARKET PARTICIPANTSMARKET PLAYERMATURITYMATURITY EXTENSIONMICRO-ENTERPRISESMORAL HAZARDMORTGAGEMORTGAGE MARKETMUNICIPAL FINANCEMUNICIPAL INVESTMENTSMUNICIPAL LOANSMUNICIPALITIESNATIONAL BANKNATIONAL TREASURYOVERDRAFT FACILITIESPARTIAL CREDITPAYMENT OBLIGATIONSPERSONAL INCOMEPORTFOLIOPORTFOLIO ALLOCATIONSPORTFOLIO DIVERSIFICATIONPORTFOLIO RISKPRIVATE BANKPRIVATE BANKSPRIVATE FINANCEPRIVATE INVESTORSPRIVATE LENDERPROCEDURES FOR APPEALPUBLIC DEBTPUBLIC DEBT MANAGEMENTPUBLIC FINANCEPUBLIC FINANCESPUBLIC SERVICE PROVISIONREGISTRATION FEESREGULATORY AUTHORITYREGULATORY FRAMEWORKREPAYMENTRESERVERESERVE FUNDRESERVE REQUIREMENTSRETURNSREVENUE ASSIGNMENTREVENUE BONDSRISK MANAGEMENTRISK MANAGEMENT STRATEGIESRISK PROFILERISK PROFILESSAVINGSSHORT-TERM LIQUIDITYSOVEREIGN GUARANTEESOVEREIGN RATINGSTAMP DUTIESSTOCK EXCHANGESUB-NATIONAL DEBTSUB-NATIONAL DEBT MARKETSUB-NATIONAL ENTITIESSUBORDINATED DEBTTARIFF REVENUETARIFF REVENUESTAXTAX CODETAX COLLECTIONTAX RATESTECHNICAL ASSISTANCETRANCHETRANCHESTRANSACTIONTRANSACTION COSTSTRANSPARENCYTREASURYUNDERLYING ASSETS10.1596/19479