The Bucharest City Hall plans to take a EUR 800 million loan on up to 20 years, to pay an existing loan and to invest in infrastructure. The infrastructure investments would require EUR 300 million. EUR 500 million would cover a bond issuance from 2005, which is due for payment in 2015. The City Hall council will decide on this new loan on Wednesday.

The City Hall's indebtedness ratio is of 10 percent, but would increase to 30 percent in 2015, which is above the legal limit. This is why a new loan to pay the existing debt is required. If approved, the new loan will be used in the next four years.

editor@romania-insider.com

(photo: Sxc.hu)