Blog » Turkey Municipal Finance and Creditworthiness Academy - Live Posting
We are happy to announce that the Municipal Finance and Creditworthiness Academy for Turkey has begun!
The Academy will run from April 10 to April 15 in Ankara and it's organized in partnership with the Union of Municipalities of Turkey. The training aims to support Turkey municipalities to improve their financial management performance for better access to financing that is needed to build sustainable and resilient infrastructure in a context of rapid urbanization and fast growing cities. Representatives from 27 Turkish sub-national governments are participating!
You are most welcomed to follow live updates from the Academy in this blog. We will be posting pictures, the Academy most important topics and presentations. Stay tuned!
I am very glad as I will be there
I have developed a brief paper about municipal finance in Jordan and the experience I got from such Academy held in Amman.
The Turkish model of local governance as I think is a success and I hope I could learn from them. And, I think that municipal finance position is in a good manner. Anyway, it is a good chance to refresh our experience, knowledge and innovations.
Here's the final agenda of the Academy, including hyperlinks to all presentation (both English/Turkish) and related material: Agenda Turkey Academy EN.docx - Box
Stephen Karam, Lead Urban Economist from the World Bank is facilitating a panel discussion on the Country Framework for Municipal Creditworthiness in Turkey.
Siting on the table from the left:
Last session of the day: "Demonstrating Sound Financial Management"
This session is moderated by Joshua Gallo, Senior Municipal Finance Specialist and Turda Ozmen, Municipal Finance Advisor, both from the World Bank. Alper Oguz from the World Bank (by the podium), Marco Sorge from IFC (second from the right by the table) and Gulcan Ustay, Country Head of Fitch Rating Turkey (first from the right), are sharing their views and experience on how creditworthiness is assessed.
Nat Gandhi, former Chief Financial Officer of Washington DC is explaining how DC went from Junk Bonds to AAA Bond Ratings
Some lessons learned from Washington DC story:
1. Conservative revenue estimates and realistic cost estimates are essential to enhance creditworthiness, yet not welcomed by politicians and policy makers since they will have less money to spend.
2. Debt ceilings are critical to enhance creditworthiness, yet not welcomed by politicians and policy makers since they will have to borrow less and thus cannot spend more.
3. Multi-year budgeting is essential to enhance credit worthiness, but it restricts the flexibility of shifting of revenue and expenditures across years.
4. The establishment of healthy reserve requirements (“rainy day funds”) is critical to enhance creditworthiness, yet not encouraged by politicians and policy makers since “there will be less money to spend now.”
5. Fiscal impact statements are critical to creditworthiness and essential ingredient of fiscal prudence, yet not welcomed because they will limit legislative flexibility.
You can find the presentation HERE