UWARUNKOWANIA PRAWNE FINANSOWANIA INWESTYCJI JEDNOSTEK SAMORZĄDU TERYTORIALNEGO POPRZEZ POZABANKOWE INSTRUMENTY FINANSOWE W POLSCE
LEGAL CONDITIONS FOR THE FINANCING OF LOCAL GOVERNMENT UNITS INVESTMENTS BY PARABANKING FINANCIAL INSTRUMENTS IN POLAND

Summary/Abstract: The regulations on debt limits introduced in 2014 caused adapting by local government unitstwo ways of proceeding. The first consists in "classic" adaptation to the provisions of thePublic Finance Act, through the restructuring of budget expenditures and the development of afinancial surplus, allowing for safe incurring of new obligations and possible servicing of "old"debt. The second way is what can be called the form of the "Creative accounting", involvingthe use of non-bank financial institutions (quasi-banks) or the use of financial operations otherthan bank loans and municipal bond issues. These are leaseback agreements, reverse sale ofreal estate, as well as unnamed agreements causing debt restructuring (e.g. subrogation, forfeitingor factoring), installment payments, as well as subsidies to the capital of municipal companies.

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