Municipal Bond Insurance after the Financial Crisis: Can it Help Reduce Borrowing Costs for Local Governments?

2018 ◽  
Author(s):  
Kenneth Kriz ◽  
Marc D. Joffe
Keyword(s):  
Financial Crisis ◽  
Local Governments ◽  
Municipal Bond ◽  
Borrowing Costs ◽  
Bond Insurance

Austerity and State Rescaling

2021 ◽  
pp. 71-90
Author(s):  
Jonathan S. Davies
Keyword(s):  
Financial Crisis ◽  
Local Governments ◽  
Global Financial Crisis ◽  
Local State ◽  
Fiscal Rules ◽  
Place Marketing ◽  
Political Capacity ◽  
Revenue Streams ◽  
The Global Financial Crisis ◽  
National Governments

The story of austerity is entwined with experiments in city-regionalism, authoritarianism, fiscal and political centralisation and downloading or scalar dumping. Interpenetrating institutional, territorial and scalar restructurings have significant implications for politics and governing cultures, and relations between local states and citizens. This chapter focuses on the evolving powers and liabilities accruing to sub-national governments in the period since the Global Financial Crisis, read through revenue streams, fiscal rules and changes to spatial and jurisdictional capacities. The key finding across the eight cities is that municipalities face a variable and increasing mix of upward and downward constraints undermining their political capacity. Considered from the standpoint of governability, state rescaling in the period since the Crisis has tended to consolidate disciplinary neoliberalism, creating additional pressures on local governments to reinforce their tax bases through place-marketing. These processes also make cities more governable for national and provincial elites, pushing local state mechanisms into closer alignment with the administrative and financial priorities of upper tier apparatuses.

scholarly journals Crisis-driven reforms and local discretion: an assessment of Italy and Spain

2015 ◽  
Vol 46 (1) ◽  
pp. 71-91 ◽  
Author(s):  
Silvia Bolgherini
Keyword(s):  
Comparative Analysis ◽  
Financial Crisis ◽  
Local Government ◽  
Local Governments ◽  
Qualitative Comparative Analysis ◽  
Institutional Framework ◽  
Local Discretion ◽  
Local Levels ◽  
Economic And Financial Crisis

The recent and still enduring global economic and financial crisis deeply impacted the institutional framework in Italy and Spain by prompting a series of reforms, which ultimately re-shaped the local government features. Based on a qualitative comparative analysis of recent reforms, the author shows that (directly and indirectly) crisis-driven provisions have significantly impacted the local levels and changed the central/local relations in both countries. During the years of crisis, a decrease in local discretion in its three main facets (fiscal, administrative, and political/functional) has taken place. This outcome could both allow for a better understanding of how central and local governments have interacted during the crisis and to contribute to the formulation of more general considerations on local discretion and central/local relations in Italy and Spain.

Supporting the future of municipal bonds in sub-Saharan Africa: the centrality of enabling environments and regulatory frameworks

2018 ◽  
Vol 30 (1) ◽  
pp. 103-122 ◽  
Author(s):  
Jeremy Gorelick
Keyword(s):  
Local Governments ◽  
Sub Saharan Africa ◽  
Municipal Bonds ◽  
Municipal Bond ◽  
Regulatory Systems ◽  
Regulatory Frameworks ◽  
The Future ◽  
Sub Saharan ◽  
National Governments

This article explores the universal obstacles limiting sub-national governments from using municipal bonds. Specifically, it examines four case studies – Johannesburg, Douala, Dakar and Kampala – to understand their approaches to municipal bond issuance. The chief obstacle to municipal bond issuance for raising funds relates to the constitutional and regulatory systems in each country. This represents a significant departure from the commonly-held understandings that cities in the region are not eligible for long-term debt, lack capacity, or are not viewed as creditworthy by purchasers of municipal bonds. The success of municipal bond issuance appears contingent on strong interlinkages between central and sub-national governments. This article critically reviews the powers granted to local governments under the countries’ constitutions, specifically the legislation that enables or prohibits municipalities from issuing bonds. Reform for a financially sustainable level of indebtedness for sub-sovereign governments is essential for the future growth of cities in sub-Saharan Africa.

scholarly journals Urban Policy in Times of Crisis: The Policy Capacity of European Cities and the Role of Multi-Level Governance

2021 ◽  
pp. 107808742110417
Author(s):  
Roberta Cucca ◽  
Costanzo Ranci
Keyword(s):  
Financial Crisis ◽  
Local Governments ◽  
Urban Policy ◽  
Local Level ◽  
Stress Test ◽  
Economic Changes ◽  
Social Challenges ◽  
Policy Capacity ◽  
European Cities ◽  
Multi Level

This article investigates how the policy capacity of urban governments in Europe to deal with the social challenges caused by the 2008-2009 financial crisis, has been strongly shaped by the institutional multi-level governance (MLG) settings in which cities were embedded. We consider the financial crisis as an important ‘stress test’ for urban policy. Urban governments faced a highly complex, trilemmatic situation: they faced not only growing social and economic problems at the local level, but also a process of devolution of institutional responsibility from central to local governments, and important cuts in central funding. Our analysis is based on an empirical investigation carried out between 2009 and 2016 in six major European cities: Barcelona, Copenhagen, Lyon, Manchester, Milan, and Munich. What clearly emerges from the research is that European cities may still show a certain capacity to innovate and govern economic changes and social challenges only if supported by an enabling MLG system.

scholarly journals Local borrowings as a tool for replenishing local budget income

2020 ◽  
Keyword(s):  
Local Governments ◽  
Legal Framework ◽  
Municipal Bond ◽  
Stage Of Development ◽  
Initial Stage ◽  
Bond Issues ◽  
Effective System ◽  
Local Budget ◽  
Effective Development ◽  
External Borrowing

In this article, the essence of local borrowing was formulated and different notions for “local borrowing” were taken into consideration. It is determined that local borrowing is one of the most important sources of replenishment of local budget revenues, which can be directed to the solution of current and long-term problems, as well as the implementation of socio-economic programs of local governments. The relevance of supplementing the local budgets of Ukraine at the expanse of local borrowing within the framework of financial decentralization was noted. It is substantiated that for the effective development of the system of local loans in Ukraine it is necessary to explore and use foreign experience in the formation of the legal and regulatory base of the functioning of the system of local borrowing. It has been researched that the existing legal framework is imperfect and incomplete, which significantly influences the development of the local borrowing institute. The state of the municipal borrowing market in Ukraine has been analyzed. It is established that the level of efficiency of municipal loans to Ukraine is very low. The tasks were introduced that will help to build the effective system of local borrowing regulation. It is revealed that the local borrowing market in Ukraine is still in its initial stage of development and is not fully developed. In connection with this, the main problems of its development are identified, among them: increasing risk of late repayment and payment of debt obligations, reduction of demand for municipal securities due to deterioration of liquidity of financial intermediaries and lack of transparency of information on activity issuers. It is proposed to improve the functioning of the local borrowing market in Ukraine by introducing an appropriate legal framework for the issuance and placement of local loan securities, widening access of local governments to the internal and external borrowing market, and simplifying the procedures for obtaining permits and registering municipal bond issues.

scholarly journals Introducing Municipal Bond Markets in Malaysia : An Assessment of Present Market Characteristics

2020 ◽  
Author(s):  
Mukaramah Harun ◽  
Ting Ding Hooi ◽  
Hussin Abdullah
Keyword(s):  
Local Governments ◽  
Central Government ◽  
Local Level ◽  
Developed Countries ◽  
International Markets ◽  
Municipal Bonds ◽  
Municipal Bond ◽  
Alternative Source ◽  
Capital Financing ◽  
Basic Infrastructure

In developed countries, urban growth has multiplied the demand for investment in basic infrastructure services such as water supply, waste removal, roads and mass transportation. At the same time, decentralization strategies have shifted the responsibility for much of these investments to the local governments. This decentralized investment requires the development of decentralized capital financing. No longer can a central government pay for local investment by raising national taxes or borrowings on international markets and using the funds simply to construct projects at the local level. The introduction of municipal bonds is one of the alternative source of funds to finance the escalating costs of financing local governments. This paper discusses the conditions underlying the development of municipal credit markets, which Malaysia can use to provide a vehicle to narrow the local government’s resource gap through debt funding.  

THE INTEREST COST EFFECT OF PRIVATE MUNICIPAL BOND INSURANCE

1980 ◽  
Vol 15 (4) ◽  
pp. 19-20 ◽  
Author(s):  
Charles W. Cole ◽  
Dennis T. Officer
Keyword(s):  
Municipal Bond ◽  
Bond Insurance ◽  
Cost Effect
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