EBRD gives Bucharest a EUR 115 mln bridge loan to pay back bonds

The European Bank for Reconstruction and Development (EBRD) has granted Bucharest a RON 550 million (EUR 115 mln) emergency bridge loan.

On May 4, the Bucharest municipality has to pay back a tranche of the bonds issued in 2015.

The EBRD loan replaces earlier plans by the city to issue new bonds. The municipality thus has the flexibility to return to the capital markets for new financing when conditions will improve.

“I am pleased that we have completed this complicated procedure at a delicate time for the financial market. We intend to return to the capital market, as soon as the market stabilises. Our thanks to the EBRD, our longstanding partner, for its involvement, efforts, and support for Bucharest,” said Bucharest mayor Gabriela Firea.

(Photo source: Facebook/Gabriela Firea)