THE EFFICIENCY OF THE RELATION LOCAL PUBLIC FINANCES - BANK SYSTEM IN ROMANIA

Romania, as EU country, must develop local investment community projects. One of the solutions is offered by the relation between local public administration and banks as the possibility of local public administration to contract borrowings from commercial banks. The relation Local Public Finances-Bank System can be analyzed with the help of efficiency concept, from a praxiological perspective. The relation supposes equilibrium between two categories of interests and objectives: economic interests, on the one hand, and social interests, on the other hand. Under the economic aspect, the interest of each part is to obtain optimum results. On the other hand, local public administrations want to contract credits with minimum interest rate and minimum costs, in general. The reality is the conditions expected by both parts cause a dilemma which affects the accomplishment of proposed aims. The solution appears after negotiations and the adjustment of requirements of both parts or after the implication of a factor which put the relation on a common field. Under the social aspect, local public administrations have the interest to put in practice local development projects which are materialized in time. These investments suppose social costs and a participation of local citizens on medium and short periods. In this domain, the interest of banks is lower, because they are private commercial agents concentrated on profit. The dilemma created can be solved if the efficiency of the relation is analyzed in the context of local development community. The investments realized using credits must be considered local development projects with good effects for both actors implicated - local administration and banks. Local community project and community development concepts are relatively new. The efficacy as a component of efficiency is the attribute of an action to realize its aim and to provoke the wanted effects. If we refer to local borrowings, the aim is very clear defined by legislation: bank credits are used only for local public investments. So, the aim is accomplish if the proposed investment are finished in accord with the term of project when the credits are contracted Efficacy means the effects of investments, also. If the effects are positive and develop the community, we can talk about the efficiency of the relation local public finances - bank system.