Bucharest Council to re-analyze previously rejected EUR 800 mn loan for the city

The Bucharest City Council will on Thursday (August 30 ) decide whether the City Hall should take a EUR 800 million loan to restructure a previous one, and whether it should borrow more money. The same loan was on the agenda during Bucharest mayor Sorin Oprescu's previous mandate, but was not approved.

The EUR 500 million loan that needs to be paid should cover the eurobonds issued in 2005, which became a public debt and increased the indebtedness level for the Bucharest City Hall, said Bucharest mayor Oprescu. The EUR 500 million eurobonds should be repaid in 2015. The City Hall also has 11 ongoing financing projects, from lenders such as the European Investment Bank, the European Community Development Bank, the European Bank for Reconstruction and Development (EBRD). Money from these lenders are being used to modernize the heating system, to revamp the historic area, revamp the water supply system and build school infrastructure. Loans are contracted for up to 25 year, some of which with a deadline in 2015. editor@romania-insider.com