LOCAL PUBLIC ADMINISTRATION AUTHORITY LOANS

Abstract

Local authorities within our country are facing an acute need for financial resources to meet the increasing local needs. This paper deals with the issue of local public administration loans for additional resources to finance the local public services and local investment projects. In the first part we focused our research on the concept and characteristics of local public administration loans and he conditions for contracting and guaranteeing them.

In the second part we brought arguments for the use of municipal bonds as an instrument of local public debt. These are debt securities issued by administrative territorial units in attracting such resources to finance certain objectives.

The main purposes for which municipal bonds are issued are: finance a new investment project, funding repair and maintenance of some assets held by the issuer, refinancing of bonds already in circulation and current expenditures.