fiscal distress

Risk Perception of State and Local Government Debt May Stress Taxes and Leverage Without a Certainty of Payment – Use of Statutory Liens, Special Revenues and Other Means of Assurance

By James E. Spiotto Fiscal distress of or perception of risk of nonpayment by government begets higher cost of borrowing and even loss of access to the market The perception of fiscal distress leads to higher interest rates (cost of borrowing) in the global markets:...

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