Digital financing controlling and ongoing reporting for municipalities

Efficient credit conditions are particularly important in difficult situations. For this reason, we have developed ongoing municipal financing controlling. In the context of municipal financial management, a variety of topics arise in the municipality and for outsourced units and companies. These make it seem sensible to install an external partner to look after your financing activities.

By setting them up in our system, analyzing and monitoring the loan portfolio, those responsible always have an overview of the financing conditions and the current financial market. In addition, there is ongoing reporting, which appears necessary for reasons of control and transparency. This also forms the basis for ongoing savings.

The realization of municipal projects is often associated with borrowing with long terms. Different risks are therefore taken with each financing decision. It makes sense to assess these risks in advance. To do this, it is necessary to identify and understand the risks. Questions such as The selection of financing partners, loan volumes and terms, current funding options up to a decision about the fixed interest rate and the applicable interest rate indicators (variable vs. fixed interest rate) require an active discussion. Correct answers require resources, time, knowledge, experience and technical systems.

Through personal support and regular reporting, current and strategic issues can be worked through. This ensures that municipalities in the area of ​​financing are always on an equal footing with the banks and meet the high requirements for the administration of public funds.

Municipal financing represents a constantly changing process. In addition to comprehensive advice for the existing loan portfolio of the municipality (including outsourced units and companies), the tendering function for new loans and debt rescheduling is also performed via a digital credit platform. This means you are close to the market and can enjoy the best conditions. In addition, you participate in the digitization and further development of municipal financing.

Success parameters for municipal loan procurement:

• Extensive preparation and post-processing
• Knowledge of banks and their behavior
• Borrower’s creditworthiness and ongoing reporting
• Focus on digitization with a personal tangent
• Knowledge and experience of supply and demand
• Personal commitment, time and know-how
• Analysis & technical equipment

On this basis, optimal financing conditions and extensive savings can be achieved without foregoing regional partnerships. Even complex issues, such as the processing of non-disclosure of negative interest rate indicators, are solved in partnership with the necessary sensitivity.

Finally, I can state that municipalities are also subject to due diligence and are responsible for their actions. Measures are subjected to a subsequent review by control bodies. The use of external specialists not only significantly reduces the interest burden on the loans but also the liability risk.

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About The Author

Heinz Hofstaetter
Over 20 years of international experience in senior management positions in the areas of consulting, banking, finance, asset management, valuation and Real Assets.