Public Finance and Debt Management

This chapter critically questions the ‘naturalisation’ of recourse to the market, namely, the process by which market devices and financial techniques were established and became unchallenged and uncontroversial technical issues. The management of public debt in financial markets was initially one among many strate- gies, and market devices became a naturalised way of financing the state only after long ideological struggles and administrative change.
Drawing on sociological studies of the long-term effects that the development and legitimisation of technical instruments have on public policy,4 I analyse state financing techniques as the products of a histori- cal process, which varies across countries and institutional contexts. The apprehension of the sovereign debt problem cannot be reduced to measures such as debt-to-GDP ratios ; for political and institutional constellations do matter. Throughout history, there have been multiple, non-market, professional tools and administrative apparatuses, which financed public spending and deficits.

Si può uscire dalla trappola del debito ricostituendo un rinnovato rapporto tra finanza ed economia reale? E’ questa la domanda a cui gli autori cercano di rispondere con una proposta di ripresa della crescita dell’economia italiana costruita sul concorso e la partecipazione finanziaria di più operatori pubblici e privati e sullo sviluppo di nuovi asset finanziari per la raccolta di capitali nazionali ed esteri da destinare al finanziamento di investimenti in infrastrutture materiali ed immateriali. Una proposta che ha l’intento di ridare centralità al ruolo innovatore dello Stato e di recuperare un dialogo tra economia e finanza da tempo interrotto al fine di evitare che l’elevato debito pubblico italiano sposti definitivamente la sovranità dal popolo ai mercati. Se questi sono gli obiettivi, riduzione del debito pubblico, ripresa della crescita ma anche costruzione di un nuovo rapporto tra capitale e lavoro, nessuno, singoli cittadini, operatori finanziari, imprese, istituzioni pubbliche e private, può sentirsi escluso da questa sfida.

Dopo una breve introduzione, viene trattato il tema del  debito pubblico in Italia e il ruolo della sua dinamica sul declino economico del Paese nell'ultimo quarantennio. Si esaminano successivamente i rischi d’instabilità finanziaria maturati durante le due crisi (2008-2009 e 2010-2015) e la nuova governance europea insieme alle politiche mancate di rientro dal debito pubblico .

After a brief introduction, the issue of the Italian Public Debt and its role on the economic decline of the Country in the last forty years. Afterwards, the financial instability risks and the new European Economic Governance are analyzed together with the missing policies aimed to regain a sound public finance.

Sustainable public debt has gained renewed attention as countries implement fiscal consolidation measures in the aftermath of the global financial crisis. Sound public debt policies and debt management practices require robust legal underpinnings. Complex legal issues however arise in the design of the legal framework, and tradeoffs are required in many instances. This paper analyzes key features of modern public debt management legal frameworks, drawing from examples in advanced, emerging, and frontier markets. It aims to provide guidance for countries that seek to review and strengthen their public debt management legal frameworks.

Within last decades, Municipal Development Funds (MDF) are being established in different countries around the world. The funds are state entities with a mission to assist financially weak local authorities in attracting local investments by debt financing combined with grants. The purpose of this report is to study the institutional structure of MDFs and to present opportunities for the implementation and management of this type of funds in Bulgaria.

You can find in this paper a summary for a research about the Lebanese public debt and what are the factors that affect it.
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The default of the 2012 and 2030 Global Bonds during the early stages of the Alianza PAIS government in Ecuador is best understood in the context of the social conflicts that characterized the exhaustion of neoliberalism in the country and the struggle between different fractions of capital for the direction of the process of accumulation. The restructuring of external debt and the new wave of public borrowing facilitated a boost in public spending that spurred economic growth and provided a ‘fiscal pacification’ of social unrest and political instability. The movements in public debt have also been a lever for State and geopolitical repositioning that reflects a new moment in the correlation of social forces and hegemony in the world economy. In this new scenario, however, Ecuador has not overcome the structural imbalances and contradictions that underpin its external debt problematic.

Пътят за постигане на добра кредитна способност преминава през добър финансов мениджмънт, включително имплементирането на напълно функционални практики за бюджетиране, счетоводство, отчитане и одит. Също така трябва да има налице предпоставки за добро планиране на бъдещите приходи, не само от приходи от собствени източници, но и от трансфери получавани от централното правителство.

In this study, it is aimed to examine the relationship between the capitalist state and, institutions that affected Turkey's financial integration with the capitalist global economy in the context of a comparative analysis. In the study, the Ottoman Public Debt Administration (OPDA) which was effective during the process of the integration of the Ottoman state into the world capitalism in the First Globalization Phase (1870-1914) is analyzed by comparison with the General Directorate of Borrowing.

The study examines the debt management strategies at the state government level. The significance impact variables used herein include the Bauchi state government's debt trend (from 2008 to 2014), and Nigeria's external debt value, domestic debt value and total debt value. Data for the study were primary and secondary data drawn from Debt Management Agency, Bauchi and analysed with Chi-square. The analysis focuses on whether or not Bauchi state government has problem of managing its debt; whether or not Bauchi state debt management policies are effective; and whether or not Bauchi state government intervention has significant improvement on debt management. The study found that Bauchi state government has problem of managing its debt; Bauchi state debt management policies are not effective; and, Bauchi state government intervention has significant improvement on debt management of Bauchi state. The study equally recommends, for Bauchi state government of Nigeria, an optimal mix of external and domestic debts in the public debt portfolios; channelling acquired loan to productive activities; to circumvent all forms of borrowing, appraise projects to be financed with loan; using more superior method to negotiate for fixed interest payment and varying amortization schemes with consideration of the state's economic limitations; and, ensuring fiscal discipline and high sense of responsibility in handling public funds towards enhancing the efficiency and effectiveness of debt management strategies.

The thesis focuses on debt management of the households in Bangkok low income community. The case study is a community that participates in “The Government Housing Project” (in Thai “Baan Mankong Project”)—where the households take loan from the Government to pay for land and house construction and pay back in installments of 2,000 – 2,500 Baht per month. Although debts in this Project give poor people chances to own land and house, it also causes the households’ debt increase. To study the poor households’ debt crises, this thesis develops 3 main research questions: firstly, What are household economic practices? , secondly, How do people manage debts from several creditors? lastly, What are conditions that make debt management possible?

The poor households rely mainly on family members to earn income. They are highly dependent on family elders. Most households lend money from their social network, including kin, relatives, neighbors, friends, both inside and outside community. However, the financial crises are only decrease for a short period of time before the cycle of debt rises again. Some households try to decrease their expenditures by sending out younger family members back to their rural communities or even let them enter the monkhood.

Debt management strategies used by the poor households are as follows: borrow more money from other sources to pay the old debts, negotiate with the debtors -- stop the installment temporarily, decrease the monthly installment payment, delay payment. The research shows that the poor prefer the private debtors than the institutional one because of the flexibility of the term of loan payment.

Conditions that make debt management possible are: increasing of incoming cash and decreasing of household expenditure. The ways to increase household income include: finding extra jobs, finding permanent jobs, sending more family members out for cash earning. One of the major problems of the poor household is the lack of access to social welfare. Most of the household are temporary workers, hence they are not eligible to any health insurance, educational scholarship or retirement funds. Accessibility of social welfare is considered by the poor as possibility to decrease their expenditures.

In times of high liquidity in the credit markets and low interest rates, debt financing is an attractive opportunity both for expanding the municipal investment program and for meeting short-term temporary current needs. The purpose of this article is to review the debt financing of local authorities in Bulgaria for the period 2008-2018, to assess whether the macroeconomic risk is currently present on municipal debt in Bulgaria, to analyze the potential risks of rising local debt levels. The change in the municipal debt of EU countries is presented, the examples of the implementation of local debt control and monitoring systems are given.

Análisis de la situación de la deuda pública tanto en España y sus Comunidades Autónomas como en la Unión Europea y el resto del mundo. Se realiza igualmente una previsión de los niveles de deuda pública que tendremos en los próximos cinco años.

Investigador principal:
Juan Aitor Lago Moneo.

Investigadores:
María de las Nieves Pérez Verdú
Lukas Daniel Bozzi
Klemens Opperman
María Gabriela Silva
Kenneth Benavides
Alejandra Rodríguez
Ignacio Álvarez González
Laura Coira Fernández
Raquel Fernández González
Artem Patrin
Francisco José Rodrigo Luelmo

Resumen: http://www.eae.es/news/2015/04/27/la-deuda-de-las-comunidades-autonomas-supera-los-235.000-millones-de-euros-en-2014-el-23-del-total-de-deuda-publica-espanola

Politik devir (iktidar değişimi), birçok sosyoekonomik ve mali faktörü etkilemektedir. Politik devrin etkilediği faktörlerden bir tanesi ise devlet borç göstergeleridir. Politik devir, devlet yönetimine hangi par-tinin geleceği konusunda belirsizliğe yol açtığından, devlet borçlarına ilişkin göstergelerle ilişkilidir. Bu açıdan, çalışmada politik devirle ilişkili dört devlet borç göstergesi belirlenmiştir. Bu göstergeler, borç düzeyi (genel devlet borcu/GSYİH), borç krizi (kriz yılları), borç temerrüdü (temerrüt yılları) ve ülkenin kredibilitesinden (kredi notları) oluşmaktadır. Çalışmada grafiklerle desteklenen söylemsel bir yöntem benimsenmiş ve Türkiye için 1960-2019 yılları arasında, politik devir ve borç göstergeleri ilişkisi analiz edilmiştir. Çalışmanın sonucuna göre; (i) Türkiye'de yoğun politik devrin yaşandığı dönemlerin ardın-dan borç düzeyi artışa geçmektedir. Politik istikrarın görüldüğü dönemlerde ise borç düzeyleri düşmektedir. (ii) Türkiye'de yoğun politik devrin ardından borç krizi yaşanmakta, krizin ardından ise politik istikrar hüküm sürmektedir. Bu durum toplumun borç krizinin ardından siyasi istikrar istediği şeklinde yorumlanabilmektedir. (iii) Türkiye'de yoğun politik devrin yaşandığı yılların ardından temerrüt sayılarında artış görülmektedir. Temerrüt yıllarında veya temerrüdün ardından ise, nispeten siyasi istikrar yaşanmaktadır. (iv) Türkiye'de politik devir kredi derecelerini olumsuz etkilemektedir ancak etki sınırlıdır. Anahtar Kelimeler: İktidar değişimi, devlet borç göstergeleri, kamu yönetimi, kamu borç yönetimi, Türkiye

This paper analyzes the impact of debt forgiveness on economic equilibrium. Since the root cause of an economic crisis is debt, eradicating the root may solve the problem. However, it does not prevent future crises from occurring. It is found that debt relief in a global scale can help reach economic equilibrium, but there are challenges to its practicality due to behavioural economics.

This paper proposes the design of an early warning system (ews) to evaluate the possibility of public debt crisis in Mexico. For the EWS construction we use the signal detection theory based on non-parametric statistics and exploratory data analysis. We generated a mainly classified index, which is able to adjust to debt fluctuations. The model is estimated using data for the period 1990-2010, taking financial ratios as classifiers, and as a target variable the total net debt of the public sector as a proportion of gdp. Our results are consistent with the theoretical proposition. This article is suggested as a manual to build up a monitoring tool that allows macroprudential analysis of public debt.

This paper proposes the design of an early warning system (EWS) to evaluate the possibility of public debt crisis in Mexico. For the EWS construction we use the signal detection theory based on non-parametric statistics and exploratory data analysis. We generated a mainly classified index, which is able to adjust to debt fluctuations. The model is estimated using data for the period 1990-2010, taking financial ratios as classifiers, and as a target variable the total net debt of the public sector as a proportion of GDP. Our results are consistent with the theoretical proposition. This article is suggested as a manual to build up a monitoring tool that allows macroprudential analysis of public debt.

The following budget review and analysis is intended to explore the FY 2019 “Finish Strong” annual budget as estimated by the city government of Tampa, Florida. This initial review will assess any key areas such as city project maintenance, public safety subjects, and accessible healthcare options for area residents. It will also cover the impact that these budgeted programs may have on the population. Possible methods to reverse any shortfalls will also be examined.

The additional areas of budget review will be focused on any new changes or projects affecting the city population, and proposed budget methods which are suggested to curb any instances or problems within Tampa. The recent recession caused great harm to the city’s ability to build wealth over the past decade (with an estimated loss of $485 million), but new resources (combined with the fullness of time) and rebounding property values should allow the city to continue funding for key services such as transportation and flood control.

Tampa’s debt payments from development and construction projects during the 90’s are expected to increase to approximately $14 million in FY 19. However, the FY 19 budget indicates that should economic success continue for the city, this will help alleviate this fiscal concern. Finally, city leaders make clear that there will be no increases on property taxes, no city employee layoffs, and no serious cuts to city services.

A presente dissertação de mestrado se coloca como mais uma contribuição para o entendimento da História de Juiz de Fora, especialmente sobre os aspectos financeiros que tocam a administração pública local. O recorte temporal arbitrariamente escolhido entre os anos de 1870 a 1900 compreende um período de significativas mudanças das estruturas sociais, econômicas, politicas e culturais. A efervescência de diversos fenômenos econômicos em âmbito local motivou nosso interesse por este momento da história que se desdobra consolidação de uma nova estrutura social. Num primeiro ponto tentamos sistematizar a produção historiográfica existente sobre a cidade de Juiz de Fora. Para isso, foram analisados diversos textos, artigos, dissertações, teses, livros, entre outros fragmentos da história local produzidos por inúmeras pessoas e instituições. Posteriormente, conduzimos nossas discussões à percepção da região como elemento analítico a partir da sua própria História Econômica, onde foi mensurada a importância da participação da Zona da Mata no comércio mundial através da produção cafeeira, esta atividade agroexportadora deu uma nova dinâmica à economia regional. Por último, e não menos importante, discorremos sobre a concentração do capital agrário no centro urbano de referência regional (Juiz de Fora) onde analisamos as emissões de títulos da dívida pública municipal sobre dois aspectos: o primeiro como forma de diversificação de investimentos particulares e o outro como mecanismo financeiro utilizado pelo poder público local a fim de levantar recursos extraordinários.