IDEAS home Printed from https://ideas.repec.org/a/ipf/finteo/v34y2010i4p379-406.html
   My bibliography  Save this article

Local government borrowing practice in Croatia

Author

Listed:
  • Anto Bajo

    (Institute of Public Finance, Zagreb)

  • Marko Primorac

    (Faculty of Economics and Business, Zagreb)

Abstract

The purpose of this paper is to analyze local government units’ borrowing in Croatia. Throughout the paper, we present the financial positions of local government units according to the size and structure of their gross and net debts, analyze borrowing conditions with commercial banks and the state development bank and discuss potential opportunities for and constraints on the issue of municipal bonds. Croatian local government units are not overindebted but do use guarantees to avoid central government borrowing restrictions. Sources of potential financial instability and risks to the creditworthiness of local government units can be found in the financial operations of utility companies. Inaugurating a credit rating system would improve control of adherence to budgetary constraints and determination of priorities for approving local government units’ borrowing.

Suggested Citation

  • Anto Bajo & Marko Primorac, 2010. "Local government borrowing practice in Croatia," Financial Theory and Practice, Institute of Public Finance, vol. 34(4), pages 379-406.
    • Handle: RePEc:ipf:finteo:v:34:y:2010:i:4:p:379-406
    as

    Download full text from publisher

    File URL: http://www.ijf.hr/eng/FTP/2010/4/bajo-primorac.pdf
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Violeta Vulovic, 2010. "The effect of sub-national borrowing control on fiscal sustainability: How to regulate?," Working Papers 2010/36, Institut d'Economia de Barcelona (IEB).
    2. Agnieszka Kozera & Aldona Standar & Łukasz Satoła, 2020. "Managing Rural Areas in the Context of the Growing Debt of Polish Local Government Units," Agriculture, MDPI, vol. 10(9), pages 1-25, August.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ipf:finteo:v:34:y:2010:i:4:p:379-406. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Martina Fabris (email available below). General contact details of provider: https://edirc.repec.org/data/ijfffhr.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.