Bucharest City Hall will contract a 462 million-lei loan, repayable in 20 years, to pay the outstanding energy subsidy to RADET.

The loan will be contracted for 20 years, with equal quarterly repayment, and will have variable interest, calculated according to ROBOR, wrote e-nergia.ro. “An internal loan is required to secure the payment of the outstanding subsidy for the supply of heating energy to the population, due to the constant decrease in the summs collected via the income tax, which led to the impossibility to pay RADET the subsidy for district heating.”

The Bucharest City Hall was able to borrow after the Government recently adopted a GEO with derogations from the legislation in force to allow municipalities to access additional loans from privatization money from the State Treasury for periods of up to 20 years within the limit of 700 millions of lei, in order to pay their arrears to the payment of subsidies for heating the population.