Naslov
Do utility companies increase local government debt in Croatia?

Autori
Bajo, Anto

Izvornik
Newsletter (Institute of Public Finance) (1333-4417) 9 (2007), 28; 1-6

Vrsta, podvrsta i kategorija rada
Radovi u časopisima, popularan rad, ostalo

Ključne riječi
local units

Sažetak
The rising trend in Croatian local units indebtedness contracted through local government- owned utility companies gives cause for concern. Institutions and corporate entities the founder and majority shareholder of which are local government units may contract debt only with the prior consent of the representative body of the local government. Such assemblies can issue guarantees above the permitted level of local government borrowing. Thus additional indebtedness can be concealed if consent is given, or guarantees are issued for corporate or institutional borrowing. For local government units can state debt servicing in their budgets through capital donations, aid and grants that they give to the establishments and companies that get into debt. For this reason the Government and the Finance Ministry should seek information from the local government units about the amounts of and conditions attached to utility firm borrowing, for their debts can create additional financial risks, destabilise the local budgets and increase the non-tax burden on the citizen.

Izvorni jezik
Engleski

Znanstvena područja
Ekonomija

POVEZANOST RADA