COVID-19: Coping with the current health crisis demands contributions from all of us. The public sector, and thus the federal government, the federal states and the municipalities, is an essential cornerstone of financial stability. The Austrian federal government has issued an aid program of EUR 38 billion.
Austria will also raise the necessary funds on the capital market through bonds, which are held to a large extent by international investors. Hopefully, this tried-and-tested system will largely ensure efficient borrowing even in the current situation. In addition to a financing structure, the federal government also has a debt management strategy. The countries also benefit from this. As is well known, this path is blocked for the municipalities. Although the debts of the municipalities without the city of Vienna are only approx. 3% of the total government debt, should there also be an efficient and partnership-based borrowing guaranteed.  The creditors of the municipalities will currently continue to be Austrian financing partners with reference to the region.
Municipalities are currently losing income, which in the short term will lead to budget shifts in addition to additional liquidity. In the foreseeable future, investment programs will also be required at the community level. This makes borrowing even more important for the communities. At the same time, the scope of the activities of community workers will increase; however, the time budgets are falling. Failures due to illness must also be compensated for.
In addition to the creditworthiness, essential success factors for efficient borrowing are personal commitment, time, know-how and a clear focus on digitalization.
As FRC – Finance & Risk Consult GmbH, we support municipalities in Austria with efficient and cooperative borrowing and loan support. On this occasion, we grant a 30% discount for all new customers who decide to work with us on credit tenders by the end of May 2020 for the first 12 months. We are convinced that we are making our contribution to “reconstruction”. Contact us via email@example.com.