nach oben

Erschienen in:

2024 | OriginalPaper | Buchkapitel

16. Two Decades of Municipal Bond Trading at the Bucharest Stock Exchange

verfasst von : Cornelia Pop, Maria-Andrada Georgescu

Erschienen in: Sustainable Approaches and Business Challenges in Times of Crisis

Verlag: Springer Nature Switzerland

Einloggen

Aktivieren Sie unsere intelligente Suche, um passende Fachinhalte oder Patente zu finden.

search-config

KI-gestützte Suche

Aus

Abstract

Borrowing through sub-sovereign (municipal) bonds is often considered a sustainable method to finance the local governments’ needs.

The present paper adds to this scarce literature a much-needed update regarding two decades of evolution of the municipal bond market segments at Bucharest Stock Exchange (henceforth BVB), showing, despite some advances, the underdeveloped stage of this market, mainly due to the ownership structure of the issued municipal bonds. The analysis presented below confirms the findings of a report for the European Bank for Reconstruction and Development issued in 2020.

Currently, the quasi-absence of municipal bond offerings (the only exception being the bonds issued by Bucharest) represents an important vulnerability for the future of the municipal bond market segment at the Bucharest Stock Exchange, which might be on the brink of closure by 2030 due to the maturity of presently listed bonds. On the other hand, the need for re-financing might bring the local governments’ option to the alternative of issuing bonds, though the central authorities need to update and improve the framework within which sub-sovereign bonds are issued and offered to investors.

Sie haben noch keine Lizenz? Dann Informieren Sie sich jetzt über unsere Produkte:

Springer Professional "Wirtschaft+Technik"

Online-Abonnement

Mit Springer Professional "Wirtschaft+Technik" erhalten Sie Zugriff auf:

über 102.000 Bücher
über 537 Zeitschriften

aus folgenden Fachgebieten:

Automobil + Motoren
Bauwesen + Immobilien
Business IT + Informatik
Elektrotechnik + Elektronik
Energie + Nachhaltigkeit
Finance + Banking
Management + Führung
Marketing + Vertrieb
Maschinenbau + Werkstoffe
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

Jetzt informieren

Springer Professional "Technik"

Online-Abonnement

Mit Springer Professional "Technik" erhalten Sie Zugriff auf:

über 67.000 Bücher
über 390 Zeitschriften

aus folgenden Fachgebieten:

Automobil + Motoren
Bauwesen + Immobilien
Business IT + Informatik
Elektrotechnik + Elektronik
Energie + Nachhaltigkeit
Maschinenbau + Werkstoffe

Jetzt Wissensvorsprung sichern!

Jetzt informieren

Springer Professional "Wirtschaft"

Online-Abonnement

Mit Springer Professional "Wirtschaft" erhalten Sie Zugriff auf:

über 67.000 Bücher
über 340 Zeitschriften

aus folgenden Fachgebieten:

Bauwesen + Immobilien
Business IT + Informatik
Finance + Banking
Management + Führung
Marketing + Vertrieb
Versicherung + Risiko

Jetzt Wissensvorsprung sichern!

Jetzt informieren

Vorheriges Kapitel Systematic Reviews and Meta-Analysis of Brand Value, Brand Equity, Brand Trust, and Brand Loyalty in Agribusiness

Nächstes Kapitel Growing Trends in Adoption of mHealth Apps and Users’ Perception of Availing Healthcare Services: A Study in Mumbai City

Nur mit Berechtigung zugänglich

Based on the data provided by Pop and Georgescu (2011), other four LAUs issued series of bonds that were never listed at BVB; the reasons could not be established. These four series of bonds were issued by: (1) the town of Breaza (Prahova county) in 2002; (2) the county of Arad in 2003; (3) the town of Targu Ocna (Bacau county) in 2004; and (4) the municipality of Cluj-Napoca (Cluj county) in 2004. No other details could be found about these issues.

A county residence is, usually, the largest municipality in the respective county; it also concentrates the county’s administrative institutions. The difference between other municipalities and towns was initially based on population; currently, the limits are not respected anymore due to the decrease in Romania’s population. Though, no demoting from the rank of municipality was performed since 2011 census, which revealed a diminishing resident population.

For this calculation the Eurostat average exchange rate, for the period 2001–2022, for EUR/RON was used.

See footnote 3.

The trading symbols for these series of bonds are: ALB26, ALB27, FOC26, IAS28A, NAV27, ORS29, TGM27, and TGM27A. For more details see Appendix 2.

The symbols for these bonds with no trading are: PRD06, ARA06, CLM05, GRG05, CLJ05, ANI20, BIS29, SLB29, ZAL30, BIH27, and TIM28. For more details, see Appendix 2.

The symbols for the bonds traded just 1 day are: PRD03, CLJ03, BIS05, AIU05, SAC07, TIM26B, PMB32, BAC26B, ALB26, ALB27, FOC26, IAS28A, NAV27, ORS29, TGM27, and TGM27A. It must be mentioned that for the first seven symbols, this one day of trading occurred without involving any special transaction(s). The special type of transaction for the last nine symbols is described within the present text.

These county residences are: Oradea, Bihor county, Brasov, Brasov county, Buzau, Buzau county, and Resita, Caras-Severin county.

Bellot, N. J., Selva, M. L. M., & Menendez, L. G. (2017). Spread of bonds issued by sub-sovereign European governments. Journal of Innovation & Knowledge, 2(3), 146–054. https://doi.org/10.1016/j.jik.2016.10.002CrossRef

Canuto, O., & Liu, L. (2010). Subnational debt finance and the global financial crisis (p. 13). The World Bank, Economic Premise. Available at: http://hdl.handle.net/10986/10186

Carausan, M. (2012). Metamorphoses of local administration in Romania. Acta Universitatis Danubius Oeconomica, 4(1), 5–22. Available at: https://journals.univ-danubius.ro/index.php/administratio/article/view/1502

Cestau, D., Hollifield, B., Li, D., & Schuerhoff, N. (2019). Municipal bond market. Annual Review of Financial Economics, 11, 65–84. https://doi.org/10.1146/annurev-financial-110118-123034CrossRef

Constantinescu, C. M., & Tanasescu, P. (2014). Municipal rating – Is it necessary? Theoretical and Applied Economics, 6(595), 57–63.

Didea, I., & Ilie, D. M. (2022). Legal regime applicable to the insolvency of the administrative-territorial units in Romania. Comparative law aspects – Colombia, Hungary, South Africa, Switzerland and the United States. Journal of Law, and Administrative Sciences, 18, 53–75. Available at: http://jolas.ro/wp-content/uploads/2022/12/jolas18a8.pdf

Ibiceanu Onica, M. C., Cristache, N., Dobrea, R. C., & Florescu, M. (2021). Regional development in Romania: Empirical evidence regarding the factors for measuring a prosperous and sustainable economy. Sustainability, 13(7), 3942. https://doi.org/10.3390/su13073942CrossRef

Ioannou, S. (2023). Regional and municipal debt in the Eurozone: A cross-country analysis. Regional Studies, 57(1), 97–111. https://doi.org/10.1080/00343404.2022.2047914CrossRef

Ioannou, S., Wojcik, D., & Pazitka, V. (2021). Financial centre bias in sub-sovereign credit ratings, Journal of International Financial Markets. Institutions & Money, 70, 101261. https://doi.org/10.1016/j.intfin.2020.101261CrossRef

Milatovic, J., Szczurek, M., (2020). Romania Diagnostic, European Bank for Reconstruction and Development, , Available at: https://www.ebrd.com/documents/strategy-and-policy-coordination/romania-diagnostic.pdf

Miricescu, E. C. (2009). Modalități de finanțare a autorităților administrației publice din Romania, Theoretical and Applied. Economics, 12(541), 142–152. Available at: http://www.ectap.ro/documente/suplimente/Finantele%20si%20stabilitatea%20economica_Finante_en2010.pdf

Padovani, E., Rescigno, L., & Ceccatelli, J. (2018). Municipal bond bebt and sustainability in a non-mature financial market: The case of Italy. Sustainability, 10(9), 3249. https://doi.org/10.3390/su10093249CrossRef

Platz, D. (2009, July). Infrastructure finance in developing countries – The potential of sub-sovereign bonds (DESA Working Paper No.76, ST/ESA/2009/DWP/76). Available at: http://www.un.org/esa/desa/papers/2009/wp76_2009.pdf

Pop, C. (2022). Bucharest Stock Exchange development between 1995 and 2020. From frontier to secondary emerging market. Studia UBB Negotia, 67(1), 71–112. https://doi.org/10.24193/subbnegotia.2022.1.04CrossRef

Pop, C., & Georgescu, M.-A. (2011). Romanian municipal bond market. In U. Bacher, D. Barkovic, K.-H. Dernoscheg, M. Larnza-Maronic, B. Matic, N. Pap, & B. Runzheimer (Eds.), Interdiscipplinary management research VII (pp. 512–544). Josip Jura Strossmayer University in Osijek.

Pop, C., & Georgescu, M.-A. (2013). Treasury bond market segment at Bucharest Stock Exchange: August 2008 – June 2012. Acta Universitatis Danubius Oeconomica, 9(2), 193–202. Available at: https://journals.univ-danubius.ro/index.php/oeconomica/article/view/1640

Pop, C., & Georgescu, M.-A. (2015). Romanian municipal bond market at Bucharest Stock Exchange: Further investigations. Theoretical and Applied Economics, XXII, 1(602), 145–176.

Pop, C., & Georgescu, M.-A. (2016). Credit enhancements and the Romanian municipal bond market. Transylvanian Review of Administrative Sciences, 48E(June), 104–123. Available at: https://rtsa.ro/tras/index.php/tras/article/view/486/475

Rius-Ulldemolins, J., & Gisbert, V. (2019). The costs of putting Valencia on the map: The hidden side of regional entrepreneurialism, ‘creative city’ and strategic projects. European Planning Studies, 27(2), 377–395. https://doi.org/10.1080/09654313.2018.1547367CrossRef

Tiron-Tudor, A., Stefanescu, C. A., & San, A. (2021). The determinants of the municipal bonds market in Romania. Transylvanian Review of Administrative Sciences, 63E(June), 175–192. https://doi.org/10.24193/tras.63E.9CrossRef

Titel: Two Decades of Municipal Bond Trading at the Bucharest Stock Exchange
verfasst von: Cornelia Pop
Maria-Andrada Georgescu
Verlag: Springer Nature Switzerland
Buch: Sustainable Approaches and Business Challenges in Times of Crisis
Print ISBN: 978-3-031-48287-8

Electronic ISBN: 978-3-031-48288-5

Copyright-Jahr: 2024
DOI: https://doi.org/10.1007/978-3-031-48288-5_16

Springer Professional

Abstract

Bitte loggen Sie sich ein, um Zugang zu Ihrer Lizenz zu erhalten.

Sie haben noch keine Lizenz? Dann Informieren Sie sich jetzt über unsere Produkte:

Springer Professional "Wirtschaft+Technik"

Springer Professional "Technik"

Springer Professional "Wirtschaft"

Premium Partner