The city authorities will place purchases for the provision of revolving credit lines in the amount of 1.6 billion rubles (three auctions for 500 million rubles and one auction for 100 million rubles with a period of 365 calendar days). The reason is the increase in Samara’s budget deficit. The funds received will be used for transport activities and road maintenance.
The press service of the Samara administration explained that the policy in the field of municipal internal debt is focused on ensuring the ability to borrow on terms acceptable to the city as a reliable borrower, and balancing the local budget while maintaining the achieved high degree of debt sustainability.
This also makes it possible to optimize the structure of municipal debt and the costs of servicing it, ensuring the absence of overdue debt obligations, reducing risks and evenly distributing debt-related payments over time.
The use of revolving credit lines, due to the possibility of repeatedly attracting finance, as well as their timely repayment (based on the availability of available funds) during the entire period of validity of the municipal contract, allows reducing the cost of budget funds for servicing municipal internal debt.
Author: Anna Turova Photographer: Vladimir Permyakov
Tags: Samara administration place tenders provision services provision revolving credit lines Samara
