Home  Journals  Regional Economics: Theory and Practice  6(99) - 2009 February

Insolvency of the constituent units (municipal bankruptcy): foreign experience

Available online: 2 October 2009

Subject Heading: Innovations and investment

JEL Classification: 

Bankruptcy of political units (municipalities, district, provinces) is equivalent to corporate bankruptcy in case of the default of the local authorities. The article deals with the main prerequisites and elements of the municipal bankruptcy mechanisms, case study of the USA, Hungary and the South African Republic. Municipal bankruptcy procedures enable to restructure debts, ensure local government functions in case of financial difficulties, distribute default losses between creditors and the unit.

Keywords: territory, constituent unit; default; bankruptcy; restructuring, debt, finances

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ISSN 2311-8733 (Online)
ISSN 2073-1477 (Print)

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