Descentralização e endividamento municipal: formas, limites e possibilidades <br> Decentralization and municipal indebtedness: modes, constraints, and possibilities

• Main Authors: Amaury Patrick Gremaud, Rudinei Toneto Jr
• Format: Article
• Language: English
• Published: Universidade Federal de Minas Gerais 2002-01-01
• Series: Nova Economia
• Subjects: municipal debt; project finance; decentralization
• Online Access: http://www.face.ufmg.br/novaeconomia/sumarios/v12n2/Gremaud.pdf

The objective of this article is to discuss alternatives to finance investments by municipalities. In general, current revenues are insufficient to finance large investments, what brings about the necessity of municipal indebtedness. These could assume different manners, according to the nature of the investment: if it is typically public or if it offers private return. For the first case, we discuss the possibilities of a municipal bond market and, for the second, we discuss project finance and the participation of the private sector.