Local Government Finance, Private Resources, and Local Credit Markets in Asia
Local Government Finance, Private Resources, and Local Credit Markets in Asia

Author: Roberto de Vera

Publisher:

Published: 2003

Total Pages: 48

ISBN-13:

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The ongoing political decentralization in Asia, with central governments devolving to local governments the responsibilities of delivering key development projects and public services, calls for sound local government finance. Local government finance in the region exhibits several problems: deterioration of the fiscal health in many countries, mismatch between the delegated responsibilities and revenue-generating authority, resultant continued heavy reliance on central government transfers, and lack of political will to develop an external financing strategy to tap long-term private resources. In order for local governments to mobilize private savings for long-term infrastructure projects, it is imperative to develop municipal credit markets. Two models of municipal credit markets can be considered: the bank model popular in Western Europe and the bond model widely used in North America. The bond model has theoretically more advantages than the other. However, Asian local governments may start with either model considering the countries' social-cultural-political milieu and keep a proper combination of both models serving different segments of local credit markets.

Local Government Financing Platforms in China: A Fortune or Misfortune?
Local Government Financing Platforms in China: A Fortune or Misfortune?

Author: MissYinqiu Lu

Publisher: International Monetary Fund

Published: 2013-12-16

Total Pages: 30

ISBN-13: 1484335902

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China’s rapid credit expansion in 2009–10 brought local government financing platforms (LGFPs) into the spotlight. This paper discusses their function, reasons behind their recent expansion, and risks they are posing to the financial sector, local governments, and sovereign balance sheet. This paper argues that LGFPs were a fortune for China in the past, but would turn out to be a misfortune if the causes of the rapid expansion of LGFPs are not addressed promptly. In this context, the paper proposes ways to avoid misfortune by: acknowledging and addressing the revenue and expenditure mismatches at the local government level; establishing a comprehensive framework to regulate and supervise local government budgets; ensuring the sustainability of the financial resources obtained from the sale of land use rights; and developing local government bond markets and promoting financial reforms.

The Development of Local Debt Markets in Asia
The Development of Local Debt Markets in Asia

Author: Mr.Mangal Goswami

Publisher: International Monetary Fund

Published: 2011-06-01

Total Pages: 33

ISBN-13: 1455259373

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The paper makes an assessment of the progress made in developing local debt markets in emerging Asia. Market development has been limited by hurdles confronting borrowers and lenders, current and potential liquidity providers, and insufficient support from government policies and regulations. Besides fostering a credit culture to deepen local debt markets, the issue of critical size can be addressed through an integrated regional market for local currency bonds that provides greater scale, efficiency, and access. With rapid economic growth in Asia, a key challenge is to generate financial assets that can provide the underlying collateral for expanding fixed-income markets, and hence domestic and regional investment opportunities.

Local Government Finance, Private Resources, and Local Credit Markets in Asia
Local Government Finance, Private Resources, and Local Credit Markets in Asia

Author: Roberto de Vera

Publisher:

Published: 2003

Total Pages: 50

ISBN-13:

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The ongoing political decentralization in Asia, with central governments devolving to local governments the responsibilities of delivering key development projects and public services, calls for sound local government finance. Local government finance in the region exhibits several problems: deterioration of the fiscal health in many countries, mismatch between the delegated responsibilities and revenue-generating authority, resultant continued heavy reliance on central government transfers, and lack of political will to develop an external financing strategy to tap long-term private resources. In order for local governments to mobilize private savings for long-term infrastructure projects, it is imperative to develop municipal credit markets. Two models of municipal credit markets can be considered: the bank model popular in Western Europe and the bond model widely used in North America. The bond model has theoretically more advantages than the other. However, Asian local governments may start with either model considering the countries' social-cultural-political milieu and keep a proper combination of both models serving different segments of local credit markets.

Meeting Asia's Infrastructure Needs
Meeting Asia's Infrastructure Needs

Author: Asian Development Bank

Publisher: Asian Development Bank

Published: 2017-02-01

Total Pages: 235

ISBN-13: 9292577549

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Infrastructure is essential for development. This report presents a snapshot of the current condition of developing Asia's infrastructure---defined here as transport, power, telecommunications, and water supply and sanitation. It examines how much the region has been investing in infrastructure and what will likely be needed through 2030. Finally, it analyzes the financial and institutional challenges that will shape future infrastructure investment and development.

Financial Sector Crisis and Restructuring
Financial Sector Crisis and Restructuring

Author: Carl-Johan Lindgren

Publisher:

Published: 1999

Total Pages: 103

ISBN-13: 9781557758712

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An IMF paper reviewing the policy responses of Indonesia, Korea and Thailand to the 1997 Asian crisis, comparing the actions of these three countries with those of Malaysia and the Philippines. Although all judgements are still tentative, important lessons can be learned from the experiences of the last two years.

Subnational Capital Markets in Developing Countries
Subnational Capital Markets in Developing Countries

Author: Mila Freire

Publisher: World Bank Publications

Published: 2004

Total Pages: 700

ISBN-13: 9780821354643

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This publication has been prepared by staff members of the World Bank and selected guest contributors. It sets out a framework to study subnational governments as borrowers and the range of credit markets in which they may operate. It also contains a number of case studies which detail the recent experience of 18 countries in developing markets for subnational borrowers., and offer insights into lessons to be drawn on fostering responsible credit market access within a framework of fiscal and financial discipline. Other issues discussed include: the issuing of municipal debt and its characteristics, and the role of macroeconomic conditions and market development in the success or failure of those borrowings.