Financing of Projects of Kosovo Municipalities through Public Debt

Abstract

This paper presents the level or degree of debt in the financing of projects or the budget of Kosovo municipalities. In general, the public debt in Kosovo is increasing from year to year, but Kosovo municipalities from the post-war period until now have a very small level of public debt, mainly in the form of guarantees from the north of Kosovo. In macroeconomic terms for public policy, governments should strive to ensure that the level and pace of growth of their public debt is substantially stable and can be served in a wide range of circumstances, meeting cost and risk objectives. Debt managers need to ensure that fiscal authorities are aware of the impact of municipal government funding requirements and debt levels on borrowing costs. The entire State Debt will have parity and equality of status, will be equal basis, regardless of when it was caused, and regardless of whether it is in the form of Government Securities, Financing Contracts, or other contractual borrowings. Municipal Debt, or Debt, is a monetary obligation or liability created by a financing agreement, treasury receipt, unsecured debt instrument, obligation, overdraft or issue of securities and, unless otherwise provided by law, includes a guarantee. In this paper it will be treated the concept and types of public debt, municipal debt in particular, then the restrictions of public debt under the legislation in Kosovo, state guarantees, the criteria for mar r yen of public debt by municipalities in Kosovo and will eventually the findings and recommendations given as a result of the research are presented.