WB highlights gap in municipal financing between developed and developing countries

Municipal borrowing levels in developing countries remain extremely low, Roland White, World Bank Global Lead for City Management, Finance and Governance, said at the 13th session of the World Urban Forum (WUF13) in Baku, Report informs.

He noted that the volume of lending allocated for municipal development in developing countries lags significantly behind similar indicators in developed economies.

"The World Bank conducted a study of commercial financing of urban infrastructure in developing countries and found that municipal borrowing in these countries remains extremely low compared to developed economies. In developed countries, municipalities actively utilize private capital through bond issuance and other financial instruments. Only about 24-25 developing countries have the conditions that allow municipalities to effectively access commercial capital markets," he emphasized.