FINANCING THE POLISH LOCAL ADMINISTRATION UNITS WITH BANK LOANS - THEORETICAL ASPECTS, ANALYSIS OF CURRENT STATE
The year 1999 marked the beginning of Poland's political system reform which was accompanied by the introduction of three-degree local administration system. Local administration units (countries, provinces and others) were equipped with properties. Legal entity, guarantees of independence and their own competences and budgets - mutually independent and separate State's Treasury. The Polish law. in accordance with the European Union law provides an opportunity to finance the local administration system from a variety of sources. The following paper concentrates on one of the methods of external finance for local administration units of repayable character: a bank loan. The aim of the paper is to locate a bank loan in a hierarchy of other forms of indebting and the evaluation of its actual use by the local administration units in Poland. The initial chapters of the paper are devoted to theoretical issues of finance and financial law. The body of the paper is of an empirical character, i.e. contains an analysis of the scope and volume of bank loans used by the local administration units in Poland. The database for the above mentioned analysis are the financial reports of the local administration units and banks, accumulated by the Ministry of Finance and the National Bank of Poland. The paper finishes with conclusions concerning the role of the bank loan in financing local administration units in Poland and an attempt to compare local administration finance with the patterns functioning in the European Union countries.
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