The municipality of Vilnius to borrow up to €50 million from the European Investment Bank (EIB) for refinancing earlier loans and investment projects, Mayor Remigijus Šimašius has said.
Remigijus Šimašius
© DELFI / Karolina Pansevič

The 10-year contract on the €25-50 million loan should be signed shortly, according to the mayor, with a green light from the City Council expected on Wednesday.

"This would be formed as a credit line. The money would be used for two areas, one of them is refinancing old debts and making them cheaper. At least half of the money will be earmarked for these needs, if we take €25 million. The rest of the sum is planned exclusively for investment in co-financing of projects financed by the European Union," Šimašius told BNS.

In his words, interest on the EIB loan would be about 1 percent, as compared to the current interest of nearly 4 percent. According to the municipality's calculations, this would allow saving about €380,000 per year.

Šimašius said the future loan was a "signal" of smooth handling of the Vilnius debt, which allows restoring trust of financial institutions.

The Lithuanian capital city's municipality told BNS that the debt currently stands at €385.8 million, including €135.69 million in loans.

BNS
It is prohibited to copy and republish the text of this publication without a written permission from UAB „BNS“.
Leave a comment
Commenting is allowed for registered users only!
By posting, you agree to terms
Read comments Read comments

Number of passengers travelling from Vilnius Airport by public transport has increased almost four times

Naturally the airport in Vilnius is the centre of intensive movement to and from which thousands of...

Lithuania will be a key player in shaping the future of blockchain in Europe and the world

Blockchain will transform digital services and Europe. It is acknowledged that Europe missed out on...

Oro Navigacija starts rebranding of its image by changing its logo

While undergoing the process of modernisation, the strategic company Oro Navigacija, whose mission is...

Nine percent increase in flight number in Lithuanian airspace

During ten months of this year, air traffic controllers handled 227.5 thousand flights in Lithuanian...

Survey: every eighth person in Lithuania has private health insurance

The results of a survey conducted in Lithuania showed that every eighth person has been ensured by...