Within the frame of the "Rating for Romania and the Black Sea countries" international conference, investment advisory company BERG (Bucharest Equity Research Group) has launched, for the first time in Romania, CR.DM (Credit Risk Debts Municipal public-info), a program that evaluates the credit default risk of municipal bonds. The service is based on public information provided by the local authorities and it is designed to serve both municipalities and investors on the capital markets, interested in municipal bonds investments. In the context of descending banking interest rates, high capital market volatility and available liquidity on the monetary market, investments in municipal bonds are very profitable and investors’ interest in these financial instruments could increase. Municipal bonds legal framework Law No 189/98 enables municipalities to:
- draw up budgets and be held responsible for their execution;
- plan medium and long term investments on the base of estimated revenues;
- establish local priorities;
- finance themselves by means of bank loans or municipal bonds issuance;
- the Capital Market Law stipulates the issuance and transaction conditions applying to municipal bonds.