Municipalne obveznice kao oblik finansiranja lokalne samouprave

Abstract

Increasing demands for the improvement of the standard of living of citizens at the local level result in a great need of the local authorities to find new financing sources. The experience of developed countries and the fact that traditional sources of financing of local governments are insufficient point to the growing importance of municipal bonds. The author emphasizes the importance of the use of municipal bonds as a necessary condition of economic growth and development of local authorities. The author emphasizes the practice of developed countries and presents a contemporary analysis of the concept, types and characteristics of municipal bonds, and also of the legal framework for the procedure of their issuance and economic feasibility of their use. Special attention is paid to the study of the secondary market of municipal bonds and its main features are identified. The author stresses the insolvency of the secondary market of municipal bonds, whose consequences are reflected in the fact that, compared to individual investors, institutional investors trade under more favorable conditions in this market. Concrete proposals are given so that, contrary to many markets around the world, the liquid secondary market of municipal bonds could be brought to life in Serbia. The author deals with the activities of local governments in the Serbian capital market, their possibilities, limitations and conditions under which they borrow in the market. Based on the conducted research, the author determines the optimum contributions of this type of securities in the Serbian financial market. Crucial limiting factors of the development of this sector are defined, with a special focus on the low level of development of the Serbian market and a high degree to which this system centers on banks. A detailed analysis of the capacity of potential investors in municipal bonds of local governments in Serbia is made, with an emphasis on the sector of individual citizens, which holds the greatest potential necessary for further market development of the municipal debt.