Municipalities of the Vladimir Region Will Get a Repayment of Bank Loans

Federal and regional budgets are going to help with it

By the end of July the municipalities of the Vladimir region will be able to zero out their commercial loans. This was announced by the region’s chief financier Vyacheslav Kuzin. It will be possible to repay debts by increasing the share of budget loans.

The first vice-governor and the head of finance department Vyacheslav Kuzin presented the report on execution of the budget 2021. To deputies of Legislative assembly he has sounded not only results of a debt policy of municipalities, but also plans on savings of expenses on service of credits. There are only three municipalities in the Vladimir region, which have debts to credit organizations. Vladimir is the leader, the share of the other two is so small that they even decided not to mention them.

The plan is to replace all bank loans with budgetary ones. The annual rates are many times less. All released funds will be put to work – will be directed to the implementation of their own powers.

“During 2021, measures were taken to optimize and reduce the level of municipal debt, including by providing grants to balance local budgets. In the amount of 1.7 billion rubles, budget loans were issued. That made it possible to avoid commercial loans and thus reduce the municipal debt by 4.7% or RUR138 mln. RUR 2.8 billion at the end of the year. The structure of municipal debt was improved. The share of commercial loans was decreased from 26% to 22%”, – noted Vyacheslav Kuzin.

It is interesting, that according to the results of 2021, 92 out of 127 municipal districts didn’t have municipal debt. The region’s chief financier stressed that 72% of them have no debts at all.

The regional center can not boast a life within its means. Even this year Vladimir city took out a budget loan to cover the deficit. The amount is substantial, but the terms are favorable – 212 million rubles at 0.1% per annum. The city treasury deficit in the winter of this year was more than 460 million rubles, as stated by the head of the financial department of the city Vera Trusova.

According to the latest accounting data of the mayor’s office, the city has four bank loans: two are taken in the “Moscow Industrial Bank”, two – in “Sberbank”. The total amount – 538 million rubles. Annual interest rates are from 6.5% to 6.85%. In addition, the city administration has three current budgetary loans at 0.1% per annum for a total of 461.1 million rubles.

Last fall, the mayor’s office tried many times to borrow from businesses to pay off the deficit, but the parties did not agree on rates and amounts of debt service. Now the city will receive regional aid.

Original publication

Related News

Back to top button