Edronova V.N.Lobachevsky State University of Nizhny Novgorod - National Research University, Nizhny Novgorod, Russian Federation v.n.edronova@mail.ru
Subject The article shows the analysis results of the experience in bond issue of Russian cities at the end of the 19th - the beginning of the 20th centuries. The most important goals of lending were financing the programs for city infrastructure development, improvement of territories, implementation of construction and social projects. This experience is very important for modern Russia's cities, as urban development, first of all, implementation of infrastructure projects, requires attracting considerable financial resources. Municipal budgets do not have sufficient funds to implement such programs, and for private business they are not attractive from investment perspective because of their focus on social rather than commercial effect. Objectives The purpose of the analysis is to identify economic reasons, which induced city authorities to go in for bond issue at the turn of the century. Methods In the course of the research, I generalized and systematized information from relevant literature, scientific articles, and minutes of meetings of the Nizhny Novgorod State Duma. Results The study identified the role of bond issue during the period from the last third of the 19th century to the third decade of the 20th century, classified the purposes of bond issues, and provided the main characteristics of the bond design. Furthermore, the article describes the stages of the loans and their substance. Conclusions and Relevance This financial instrument played an extremely important role in territory's development. It is appropriate to use the accumulated experience in the present-day practice of Russian cities financing.
Keywords: loan, city budget, municipal credit, city bonds, investment resources
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