The Municipal Bonds – the Cause and the Effect of the Local Financial Decentralisation Growth. Romanian Case

Abstract

This paper work analyses the connection between local financial decentralization and the potential of local public administration to sustain the local economic and social development by its own forces by taking part to the capital market. Next to the ordinary financial sources, which are the local taxes, the local collectivities resorted last years more and more to the loans, by issuing municipal bonds. As an effect and then as a cause of the local autonomy and financial independence growth, these kinds of financial instruments gave the chance to the local public administrations to answer all community needs in efficiency and efficacy terms