22/05/07 Table 13 — Municipal Governments Debt, 1998 or 1999 La Paz Trinidad El Vinto Sucre El Alto 1998 1998 1999 1998 1998 Short-term debt Wages TFSE Social Security Suppliers Debt service Total
3,338 10,753 19,085 30,840 88 64,250
159 79 20 1,728 1,986
77 14 38 420 571
136 1,847 1,944
6,431 9,430 3,451 19,312
Long-term debt FNDR Other Total
113,880 264,653 378,533
27,129 2,059 29,188
4,227 292 4,520
10,849 38,052 48,901
16,475 16,475
Total, debt
442,783
31,175
5,090
50,846
35,787
Budgetary resources 340,837 Source: FNDR files
20,782
5,564
60,409
110,340
This sample suggests three points about municipal debt. First, the total indebtedness of municipal governments is of the same order of magnitude as their yearly budgetary resources. Except in the case of El Alto, it represents between 90% and 130% of yearly resources. Second, the long-term debt is about 10 times larger than short-term debt. Third, FNDR is the most important source of long-term credit for municipal governments: indebtedness to FNDR represents between 30% and 100% of long term indebtedness. All long-term loans benefit from a guarantee on block grant (coparticipacion) and or other resources. The maturity of loans varies from 5 years to 15 years. Interest rates also vary, from 6% to 13%, with FNDR lending at about 7%. There are also loans made at concessionary, or even zero, rates, for certain types of projects.
Section VI - Three Key Sectors: Education, Health and Transport To get a better understanding of the relative importance of municipal governments in the entire public sector, of the main financial and decision-making mechanism, and more generally of the decentralization process in Bolivia, we selected three important sectors. Table 14 present incomplete data that nevertheless gives and idea of the relative importance of these sectors. It suggests that the three sectors account for about half of total public expenditures in terms of investments. The three sectors are examined in turn. 34