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Explaining Borrowing Patterns of Mexican Cities: The Case of the State of Guanajuato

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  • Heidi Jane M. Smith

Abstract

This paper seeks to describe how and why municipalities in Mexico run up public debt with a particular emphasis on analyzing the circumstances and conditions under which municipalities should resort to indebtedness. More specifically, the paper analyzes when and why municipalities take on debt; the best offers (in terms of interest rates, public or private debt service); the purpose of the loans (investments in infrastructure, economic development, covering operating expenses); and the rates of repayment and/or default. The main objective is to better understand the borrowing patterns of Mexican cities and whether they run up public or private debt

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  • Heidi Jane M. Smith, 2013. "Explaining Borrowing Patterns of Mexican Cities: The Case of the State of Guanajuato," Economic Alternatives, University of National and World Economy, Sofia, Bulgaria, issue 2, pages 75-87, April.
    • Handle: RePEc:nwe:eajour:y:2013:i:2:p:75-87
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    Keywords

    borrowing patterns; state of Guanajuato;

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