Yerel Yönetimlerin Sermaye Piyasaları Yoluyla Finansmanı: Yerel Yönetim Tahvilleri, Yerel Yönetim Bankacılığı ve İller Bankası Uygulaması

Abstract

This thesis aims to determine the borrowing capacity and alternatives of Turkish local governments through capital markets considering the international practices.

Firstly, we analyze international municipal bond bank activities, Ilbank operational and financial structure and developed a bond issue model for Ilbank. We carry out a scenario analyzes for our model considering the commercial banks credit interest rates, corporate bonds interst rates and treasury bonds interest rates between 2013-2015. As a result, we find out that local governments can make a %18,33 interest rate savings compare to the commercial banks credits to local governments in a good possibility. However, if Ilbank gets 100 basis point as a commission rate and could not achieve borrowing less than +100 basis point compare to the treasury borrowing rate, there will not be any interest rate advantages for local governments in the model.

Secondly, we propose a money market model for local goverment both for their credits and deposits. We carry out a second scenario analyzes for our model considering the Takasbank Money Market and Tukish Central Bank statistics. As a result, we find out that local goverments can get %21 to %30 more interest earnings for their deposits and pay %10-%25 less for their short term credits.

Laslty, we analyze the demand and supply side factors of municipal bonds in Turkey and we proposed a municipal bond structure for metropolitan municipalities and their subsidiary companies in which the bonds have variable interest rates, a large part of the issue should be sold in the international capital markets and national part of the issue may be in the form of private placement or sales to qualified investors. We suggest a pooled finance model via İlbank for the municipalities other than metropolitans.