Coping with the health crisis combined with the subsequent economic challenges requires many contributions. An essential cornerstone of stability is the public sector with an unprecedented aid program. The effects on the communities are already visible. Among other things, this affects defaults in local tax and a slump in the share of income. Municipalities therefore need budget and liquidity shifts.
In order to continue to implement projects in the municipal area, the planning of the municipal finances has become even more important for us in times of the Corona crisis and its effects. Funding that has already been announced may need to be re-evaluated. Therefore, we are also required to create new scenario calculations for our current major project. Fundraising and borrowing, as well as financing conditions, will become even more important for us.
We bake small rolls for 1,700 residents. Nevertheless, we are currently facing current challenges. The expansion and modernization of our kindergarten is very important to us and should be implemented shortly. It is important to us to secure sustainable projects for all of our citizens, especially our children, even in these times.
Unlike the Republic of Austria and the federal states, which have international investors for bonds through the Federal Finance Agency, we rely on local lenders. However, banks are currently facing major challenges and it has become increasingly difficult for us to keep an overview. For this reason, too, we have been working with FRC-Finance & Risk Consult GmbH from Eisenstadt for many years and can point to excellent results. In addition to ongoing support, which always guarantees us the usual financing conditions, another focus is fundraising and borrowing, also via the digital route.
The market for municipal financing has gotten very much in motion in recent years due to the long period of low interest rates. It is not just the creditworthiness of the municipality that is decisive for the economic results of a tender. Bank-internal factors are increasingly playing a role that cannot be recognized or even assessed from the outside. That is why we trust experts who know both sides, have extensive experience and can also leverage opportunities for us.
In recent years we have learned that the key success factors for municipal financing have significantly more components than just a personal component.
Best possible preparation and follow-up of fundraising
Knowledge of the respective banks or financiers and their behavior
Borrower’s creditworthiness combined with supportive reporting
Extensive knowledge and experience in supply (banks) and demand (public sector)
Personal commitment, time and know-how
System technical equipment of the service provider
Clear focus on digitization in financing with a personal tangent
Correct “mixing ratio” at the right time
- Best possible preparation and follow-up of fundraising
- Knowledge of the respective banks or financiers and their behavior
- Borrower’s creditworthiness combined with supportive reporting
- Extensive knowledge and experience in supply (banks) and demand (public sector)
- Personal commitment, time and know-how
- System technical equipment of the service provider
- Clear focus on digitization in financing with a personal tangent
- Correct “mixing ratio” at the right time
Positioned in this way, we as the Hofamt Priel municipality are very confident that we will be able to master the current situation and to obtain the best possible funds and borrowings to implement our kindergarten.
Finally, it is important for me to emphasize that the involvement of FRC-Finance & Risk Consult GmbH always complies with the strict requirements in the area of documentation and control. This also withstands a subsequent evaluation and reduces my liability risk as a mayor.
Bürgermeister der Gemeinde Hofamt Priel
3681 Hofamt Priel, NÖ
T +43 (0) 7412 52421-0
M [email protected]ofamtpriel.at
Rückfragen an FRC:
FRC – Finance & Risk Consult GmbH
Mag. Heinz Hofstaetter
T +43 664 816 34 28
M [email protected]
Bildquelle: Gemeinde Hofamt Priel