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Subnational Bond Markets

In many countries decentralised public entities are responsible for undertaking various infrastructure investments required to meet basic needs at the local level, including utilities, transportation, health, education and environmental protection. To meet their funding needs, these decentralised entities, access subnational bond markets.

This policy area addresses mainly the different institutional arrangements in place concerning the strategic and operational autonomy of local governments vis-à-vis central governments as far as the debt policy of the former is concerned. It will also discuss the role of central government, if any, in co-ordinating access to capital markets by sub-national governments.

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