Location: Eskişehir -Şanlıurfa, Turkey

Date of Start and Completion: 2022

Clients: ILBANK – Eskişehir metropolitan municipality – Şanlıurfa metropolitan municipality

Project Description:

The subject of the project was to evaluate the financial strength and credit of the municipality and the risk of loan allocation to the municipality. In general, the report consisted of 3 parts:

1. Knowing the socio-economic and legal features of the city.
2. Evaluating the financial documents of the municipality (balance sheet and profit and loss statement) and calculating financial ratios such as debt and liquidity ratios, etc.
3. Forecasting economic, social, and financial variables of the city. Finally, based on the collection of these studies, an assessment of the risk of lending to the municipality was provided.

In the first section, the fiscal status of the municipality was analyzed based on the official documents published by the municipality and approved by the Turkish Court of Accounts (TCA). These analyses involved comparing approved budget figures with actual values realized and examining financial ratios indicating debts, income, and revenues. Hence, in section 2, variables including population and number of households, GDP, sectoral GDP, employment, and inflation rate were analyzed and forecasted. These forecasts were provided in three scenarios: pessimistic, main, and optimistic.

Finally, the revenues, expenditures, balance, and financial ratios of the metropolitan municipality were forecasted. These forecasts served as the basis of the credibility analysis of the aforementioned metropolitan municipalities.