CHALLENGES IN LOCAL GOVERNMENT UNITS PROJECT FINANCING WITH PARTICULAR REFERENCE TO THE REPUBLIC OF MACEDONIA

Risteska, Fanka and Spaseska, Tatjana and Risteska, Aneta (2013) CHALLENGES IN LOCAL GOVERNMENT UNITS PROJECT FINANCING WITH PARTICULAR REFERENCE TO THE REPUBLIC OF MACEDONIA. 3rd International Scientific Conference “Economy of Integration” ICEI 2013 „Using Knowledge to Move from Recession to Prosperity“.

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Official URL: http://icei.ba/en/conference-proceedings-2/

Abstract

One of the necessary presumptions for improvement of the economic growth of a certain country is the existence of a developed infrastructure. However, the realization of projects in the field of infrastructure requires large investments. Bearing in mind that the resources for this purpose are limited on one hand, as well as the constant increase in the needs of the population on the other hand, arises the need to find alternative ways of financing infrastructural projects and providing better public services. In this context, municipal bonds are becoming one of the challenges that municipalities face in financing their projects. Namely, in modern financial markets, municipal bonds are the cheapest and the most reliable instrument for financing public projects. In world practice, municipal bonds are a good alternative to direct savings and to invest, due to low risk and tax exemptions.In our practice existing LSGUs(local-self-government units)incomes are defined in the Law on Local Self -Government and depending on the size of the municipalities, have relatively limited opportunities to better meet the needs of citizens.Thus, lack of regular sources of funding on one hand, and the increased need for better meeting the needs of the population, on the other hand, suggests the need for finding alternative sources of funding.Our to date practice of functioning of financial markets did not include municipal bonds as credit securities.The Law on Local Self-Government and the Law on securities, created legal foundations for municipalities to be able to issue bonds to finance certain comunal-infrastructure projects.As the main goal of this research is realization of the current state of LSGUs in R. Macedonia and their capacity to issue municipal bonds to finance projects of public interest on one hand, and interest and willingness of potential investors to invest their funds in this type of securities, on the other hand.

Item Type: Article
Subjects: Scientific Fields (Frascati) > Social Sciences > Economics and Business
Divisions: Faculty of Economics
Depositing User: Mr Dimitar Risteski
Date Deposited: 27 Dec 2019 20:37
Last Modified: 05 Mar 2020 09:39
URI: http://eprints.uklo.edu.mk/id/eprint/2305

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