Subnational Debt Management and Restructuring

Subnational debt problems are not unique to China or to developing countries. They have recently been observed in the U.S. and in the United Kingdom, among others. This e-book provides examples to help policymakers in heading off those situations. It chronicles international experiences and lessons learned on how countries have successfully managed their subnational debt. It looks at how they undertook effective fiscal adjustment measures - not only to restructure the troubled subnational debts but also to adjust their subnational economies through better fiscal and debt management - with varying levels of involvement from the central government. The e-book also addresses changing intergovernmental fiscal relationships, and tactics that involve imposing fiscal rules in order to maintain fiscal and debt sustainability over time. The materials in this e-book were first presented at the “Subnational Debt Summit” held in Nanning, China on October 22, 2015.