Bucharest’s General Council decided to borrow RON 462 million (some EUR 100 million) from the Government’s Treasury, under a facility made available to local administration by government emergency ordinance (OUG) 35/2019. The money will be used for paying the subsidies for the heating and hot water to heating supplier Elcen, Hotnews.ro reported.

The municipality will repay the money to Treasury within 20 years plus a yearly interest rate 3.5 percentage points over money market interest rate ROBOR for the 3-month maturity funds.

The City Council passed the decision to borrow the money after MP Nicusor Dan warned that the principality was heading to default since it projected its revenues some RON 3 billion (EUR 630 mln) above what it typically collected over the past years.

Last week, Elcen reportedly urged the municipality to pay its overdue debts, accumulated during 2018-2019, or else it would no longer be able to deliver hot water to households.

editor@romania-insider.com

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