Fitch considers this closer fiscal monitoring as credit positive for the French LRGs
Fitch rates LRGs
in more than 25 countries throughout the world.
This increased control for central governments mainly results from the EU fiscal consolidation rules as they take into account the general government debt or deficit, and make central governments responsible for LRGs' public finances in their respective countries.
As a result, budgetary stability became a constitutional principle, legitimising a reinforcement of the central government's control over LRGs.
Fitch projects that the LRGs will report budgetary performance and debt metrics that are commensurate with their ratings.
Credit analyses on the 12 Italian LRGs are available at www.fitchratings.com.
The predictability of Russian local and regional governments' (LRGs
) budgetary policy is hampered by the frequent reallocation of revenue and expenditure responsibilities within government tiers.
Like most Russian LRGs
, Lipetsk's debt is front-loaded, which makes the region exposed to medium-term refinancing pressure, as 60% of its current direct risk will mature in 2018-2020.
Fitch expects the city to finance the majority of this capex from its current balance, accumulated cash and non-returnable investment grants available to Polish local and regional governments (LRGs), which should limit Gdansk's recourse to debt.
Local tax rates such as real estate tax, which some LRGs are entitled to collect, are capped by the state.
The Finance Programming Bill for 2018-2022 imposes new prudential rules on the French LRGs: a current spending growth ceiling (1.2% a year on average, including inflation); an objective to reduce financial needs; and a debt payback ratio ceiling.
The evolution of current spending growth will also be constrained by the new Finance Programming Bill for 2018-2022, which aims at limiting French local and regional governments' (LRG) current spending growth to 1.2% a year.