Potential sources of financing the municipalities in Turkish republic of Northern Cyprus (TRNC)

Abstract

Together with the central government, the local governments that are mainly municipalities have a lot of responsibilities and positive contributions for the economic, social, cultural and democratic development of a country. Hence, the municipalities have to obtain the financial resources to undertake their modern functions. The purpose of the study is to underline the potential ways of financing the municipalities in TRNC. As a summary, this study shows that the financial resources of the TRNC municipalities is not even enough for their essential planned investments. Furthermore, it should be pointed out that the municipalities come across great difficulties of getting loans; the insufficiency of the state’s contribution and other aids; and inability and impossibility of applying for international sources due to the country’s international unrecognized situation.