Preliminary communication

https://doi.org/10.2507/IJVA.1.1.5.5

Determinants Of Choosing Sources Of Financing For Municipal Projects

Dancho Petrov ; Varna University of Economics, Finance Department, Bulgaria

Abstract

The paper discusses various alternatives for financing socially significant projects of municipalities. Having in mind the opportunities and limitations of municipal budgets and the example of the municipality of Burgas, the paper analyzes positive and negative sides of financing with own resources, bank loans, bond issues, pooling and revolving schemes. The focus of the research are the factors that influence the choice of a financing alternative –costs of funding, level of financial infrastructure, regulative conditions, debt risk, level of decentralization and opportunities for generating revenues. By use of selected diagnostic indicators there are outlined the challenges to successful realization of socially significant municipal projects.

Keywords

municipal budget; own resources; socially significant projects; financial market; bond issue

Hrčak ID:

154116

URI

https://hrcak.srce.hr/154116

Publication date:

15.6.2015.

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