Abstract:In order to stimulate investment activity local authorities give municipal financial support to economic entities. In practice, despite the diverse forms of municipal financial support to investment activities, local governments are mainly used to provide subsidies to compensate for part of the interest rate on bank credits and exemptions on rentals of municipal property. The authors suggest using also other forms of support to investments in the local economy.
Keywords:bank loans, investment, local governments, municipal financial support, rental of property, tax exemptions
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