The municipality of Vladivostok continues to fix holes in the budget and is again asking for a loan.
The city administration plans to open a credit "wallet" with a limit of 400 million rubles. The mayor's office plans to use that money to pay off its budget deficit.
The initial contract price is 180 million rubles. Applications are now open and will close on November 17 this year. Information about the purchase was published and updated on November 9.
According to the terms of the documentation, the municipality can take this money not all at once, but in parts called installments. The credit limit is valid for about 3 years.
For the use of this money, the municipality is required to pay interest at a variable rate. The cost of a loan to the city depends directly on the policy of the central bank: if the key interest rate increases, the loan becomes more expensive, and if it decreases, it becomes cheaper.
The bank has the right to demand from the municipality reports on the execution of the budget and excerpts from the municipal debt register in order to ensure strict use of the funds for the stated purpose. The city, in turn, can pay off the debt early at any time without fees or penalties.
If the municipality delays paying the interest, the bank will charge a fine of three hundredths of the key rate of the central bank of the unpaid amount for each day of delay.
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