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The Debt Of Municipalities In Bulgaria - Threat Or Opportunity

Author

Listed:
  • Desislava Zheleva Kalcheva

    (Sofia University St. Kliment Ohridski)

Abstract

In times of high liquidity in the credit markets and low interest rates, debt financing is an attractive opportunity both for expanding the municipal investment program and for meeting short-term temporary current needs. The purpose of this article is to review the debt financing of local authorities in Bulgaria for the period 2008-2018, to assess whether the macroeconomic risk is currently present on municipal debt in Bulgaria, to analyze the potential risks of rising local debt levels. The change in the municipal debt of EU countries is presented, the examples of the implementation of local debt control and monitoring systems are given.

Suggested Citation

  • Desislava Zheleva Kalcheva, 2020. "The Debt Of Municipalities In Bulgaria - Threat Or Opportunity," Economics and Management, Faculty of Economics, SOUTH-WEST UNIVERSITY "NEOFIT RILSKI", BLAGOEVGRAD, vol. 17(1), pages 58-67.
    • Handle: RePEc:neo:journl:v:17:y:2020:i:1:p:58-67
    as

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    References listed on IDEAS

    as
    1. Céline Du Boys & Emanuele Padovani & Rebecca L Orelli, 2014. "Assessing Financial Health Of Local Governments: Going Beyond Accounting Standards," Post-Print hal-01470282, HAL.
    2. Teresa Ter-Minassian, 2007. "Fiscal Rules for Subnational Governments: Can They Promote Fiscal Discipline?," OECD Journal on Budgeting, OECD Publishing, vol. 6(3), pages 1-11.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    debt financing; local governments; Bulgaria; financial situation;
    All these keywords.

    JEL classification:

    • E62 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Fiscal Policy; Modern Monetary Theory
    • H63 - Public Economics - - National Budget, Deficit, and Debt - - - Debt; Debt Management; Sovereign Debt
    • H74 - Public Economics - - State and Local Government; Intergovernmental Relations - - - State and Local Borrowing

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