IDEAS home Printed from https://ideas.repec.org/a/ipf/finteo/v35y2011i4p443-464.html
   My bibliography  Save this article

Local government and utility firms’ debts

Author

Listed:
  • Marko Primorac

    (Faculty of Economics and Business, Zagreb)

Abstract

The global financial crisis has affected the Croatian local public sector. In such circumstances, local government units’ debts and borrowing should be approached with caution. The highly interwoven financial operations of local government units and their utilities indicate the need for analysis of consolidated financial statements of local governments and utility companies in order to gain an insight into the real financial “health” of local units. Accordingly, the main aim of this paper is to analyze the size and the structure of the consolidated (local government and utility companies) local public debt in Croatia. Accordingly, the paper presents the financial position of local government units supplemented with information on the financial operations of utility companies, with particular emphasis on the size and structure of their liabilities and gross and net debt. Although the current Budget Law does not require formal preparation of consolidated financial statements by local governments and their utility firms, consolidation is stipulated by International Public Sector Accounting Standards (IPSAS). The application of IPSAS regulations would be helpful in determining overall direct and indirect exposure of local government units arising from the financial operations of their utilities.

Suggested Citation

  • Marko Primorac, 2011. "Local government and utility firms’ debts," Financial Theory and Practice, Institute of Public Finance, vol. 35(4), pages 443-464.
  • Handle: RePEc:ipf:finteo:v:35:y:2011:i:4:p:443-464
    as

    Download full text from publisher

    File URL: http://www.ijf.hr/upload/files/file/FTP/2011/4/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. Ivana Rašić Bakarić & Hrvoje Šimović & Maruška Vizek, 2013. "Ekonomska uspješnost gradova u Hrvatskoj - statistička analiza," EFZG Working Papers Series 1308, Faculty of Economics and Business, University of Zagreb.
    2. Velibor Mačkić, 2014. "Političko-proračunski ciklusi na uzorku hrvatskih gradova," EFZG Working Papers Series 1401, Faculty of Economics and Business, University of Zagreb.

    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:35:y:2011:i:4:p:443-464. See general information about how to correct material in RePEc.

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

    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 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.