FINANCING OF CAPITAL INFRASTRUCTURE THROUGH ISSUE OF MUNICIPAL BONDS - PRACTICES OF THE MUNICIPALITY OF BIJELJINA

• Published in: Proceedings of the Faculty of Economics in East Sarajevo / Zbornik Radova Ekonomskog Fakulteta u Istočnom Sarajevu Vol. 6; pp. 45 - 62
• Main Author: Zorica Golić
• Format: Journal Article
• Language: English; Serbian
• Published: Pale University of East Sarajevo 01-01-2012
• Subjects: financing of capital infrastructure; local community; municipal bonds; the municipality of Bijeljina
• ISSN: 1840-3557

For all those local communities inBosnia and Herzegovina who are willing to make astep forward from the classical and routinefinancing (budget, loans, grants) towards new andinventive combinations, there are really many waysof financing of development. Plans and instrumentsof local development open up new and endlesspossibilities, and all modes of financing and theircombinations cannot be pre-anticipated andexhausted. The need to create new models offinancing depends more on the real commitment oflocal actors to implementing their developmentideas than on the legal framework.Despite the limitations that issuers have andthe risks borne by the investor - the buyer, theborrowing of municipalities and cities throughbond issues turned out better and more efficientsource of funding in relation to other forms ofborrowing.The essence of this paper is to show, after abrief theoretical elaboration, the best practices infinancing of capital infrastructure through issue ofthe municipal bonds, taking the example of themunicipality of Bijeljina .