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The indebtedness of small municipalities
PRENNEROVÁ, Lucie
At present, the indebtedness of territorial self-governments concerns mainly small municipalities. Thanks to the right of independence and sovereignty, they can manage independently their budgets and real property. This fact has led municipalities to develop their business activities. In the Czech Republic, 3 235 municipalities are in debt, which is more than half of the total. The debts consist mainly of bank credits, but also revenues from municipal bonds issued and repayable financial assistance and credits from the state budget and state funds. These income groups are called returnable income. This thesis explores the importance of using returnable income for financing the development of municipalities. The thesis aims to recommend how municipalities should treat the money. It also lists the risks of high indebtedness are and what the indebtedness rules and limits are in the Czech Republic. The aim of the thesis is evaluate the conditions, development and potential risks of the indebtedness of small municipalities.

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