Until now, debt issuance by local and regional governments LRGs in Asia -- particularly in emerging Asia -- has been small compared with the US and Europe. But recent government policies in Asia calling for large increases in infrastructure development spending look set to change this. To improve the efficiency of fiscal stimulus measures, all government levels will be required to participate in the effort, from national to stateprovincial and local governments, including via public sector companies.
In some cases, the money will come directly from national budgets. In other cases, it will be up to LRGs to raise capital. This, we believe, will lead to a short- to medium-term rise in...
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