Bogdan Tudorache

The money that Bucharest City Hall (PMB) decided to borrow from the state treasury for the subsidy of the thermal energy “bring the situation up to date”, sources close to the situation told energynomics.ro.

“The City Hall’s money will be added up to the escrow account. PMB has budgeted for this year 800 million – 1 billion lei for thermal energy, this does not mean that it will lend also the rest of the money to the end of the year, but will pay out of its own tax collection”, the quoted source said.

“The subsidy is not paid exclusively from this loan. There are other sources. But it is important that things move quickly bureaucratically. The fact that the Hall, through the City Council, has decided to take this loan is one thing, but the drawings from the treasury involve more bureaucratic procedures that take time. I do not think PMB will borrow again for the second part of the year,” the source added.

Bucharest City Hall borrowed 462 million lei, repayable in 20 years, in order to pay the subsidy which is owed for thermal energy supply to RADET. The Bucharest City Hall was able to borrow more after the Government recently adopted an ordinance by which the mayors can access the money from privatizations from the State Treasury for periods of up to 20 years, within the limit of 700 million lei.