Insolvency Frameworks for Sub-national Governments

Katharina Herold

No 23, OECD Working Papers on Fiscal Federalism from OECD Publishing

Abstract: Sub-national insolvency frameworks stipulate rules and procedures to resolve sub-national debt in a prompt and orderly way. As such they may serve to facilitate debt restructuring and the fiscal recovery of sub-national entities. They may even prevent sub-national governments from sliding into insolvency. This paper identifies the benefits of setting up an insolvency framework for sub-national governments complementing existing budget rules and procedures. It analyses different design options of sub-national insolvency frameworks by drawing on existing regimes for municipalities in Colombia, Hungary, South Africa, Switzerland and the United States as well as proposals for sovereign bankruptcy procedures in the literature. The paper also explores the main challenges for implementing sub-national insolvency regimes and presents possible solutions.

Keywords: debt resolution frameworks; municipal bankruptcy; sub-national insolvency (search for similar items in EconPapers)
JEL-codes: H7 K3 (search for similar items in EconPapers)
Date: 2018-02-27
References: Add references at CitEc
Citations: View citations in EconPapers (5)

Downloads: (external link)
https://doi.org/10.1787/f9874122-en (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:oec:ctpaab:23-en

Access Statistics for this paper

More papers in OECD Working Papers on Fiscal Federalism from OECD Publishing Contact information at EDIRC.
Bibliographic data for series maintained by ().