i.5 Manage Your Debt After It Is Issued

i.5 Manage Your Debt After It Is Issued

Public agencies that issue debt are likely to benefit from good management practices, including efforts to establish and maintain policies and procedures that produce accountability and transparency. Issuers that have developed strong administrative systems to manage their debts are more likely to comply with their securities and tax obligations and avoid the cost of having to make reparations to investors, regulators, and the public if they fail to comply with these obligations.

Apart from the financial rewards, however, public agencies and the elected officials that lead them, should understand that debt financing is NOT a source of unrestricted funds. The use of debt financing imparts a tremendous legal, financial, and administrative burden and must be used wisely, with a complete understanding of the responsibilities assumed.