Loans for Small Towns and Municipalitie

The loan is intended to compensate for the timing mismatch between the revenue and expenditure of the municipalities' general budget during the financial year.

Loan drawdown:

• on the client's current account up to the amount of the approved credit limit

Loan maturity and repayment:

• in terms of Act on Budget Rules of the Regional Self-Administration and of Change and Amendment of Particular Acts no. 583/2004 Coll., the loan must be repaid by the end of the financial year,
• the loan shall be repaid in one lump sum or by a gradual reduction of the credit limit.

Fees:

• discounted loan origination fee,
• no fee for reserving unprovided funds,
• other fees are determined in accordance with the Price List of VUB, a. s.

Securing the loan:

• minimum securement: based on individual assessment.

Conditions of loan provision:

• demonstration of the ability to repay the loan, including interest and fees, within the required repayment period and on the pre-agreed terms,
• a written confirmation issued and signed by the chief controller of the municipality/town/higher territorial unit on compliance with all the conditions for accepting repayable financing under Act no. 583/2004 Coll.,
• the purpose of the loan: the bank grants the loan to cover the operational needs of the municipality/town,
• the security of the loan, including interest and fees,
• other conditions depending on the nature of the transaction, knowledge and creditworthiness of the applicant, (e.g. drawing up a notarial deed as a writ of execution on the property).

Required documents:

• a written Loan Application Form including additional tabular attachments depending on the amount and type of loan requested,
• a certificate of election as mayor,
• resolution and signed minutes regarding approval of the loan application and approval of the loan security,
• the final accounts of the municipality/town for the previous year,
• the budget for the current year, taking into account the requested loan on the revenue side and the repayment of the loan principal and interest on the expenditure side, approved by the municipal/town council,
• documents to secure the loan.

I'm interested

The loan is intended to finance the investment needs of towns and municipalities.

Purpose of the loan:

• the loan is intended to finance the investment needs of towns, municipalities, or higher territorial units. It covers the acquisition of tangible or intangible fixed assets (real estate, machinery and utility equipment), their modernisation, reconstruction, maintenance, purchase of IT equipment and software, financing of energy saving projects, reconstruction of public lighting and heating equipment, etc.

Loan drawdown:

• in the form of a one-off or phased drawdown.

Loan maturity and repayment:

• the maximum repayment period of the investment loan is 20 years, depending on the project and the budget of the municipality/town/higher territorial unit.

The investment loan is repayable:

• by means of regular monthly linear or annuity instalments according to an agreed repayment schedule.

Fees:

• discounted loan origination fee,
• no fee for reserving unprovided funds,
• other fees are determined in accordance with the Price List of VUB, a. s.

Securing the loan:

• minimum security: based on individual assessment.

Conditions of loan provision:

• demonstration of the ability to repay the loan, including interest and fees, within the required repayment period and on the pre-agreed terms,
• a written confirmation issued and signed by the chief controller of the municipality/towny/higher territorial unit on compliance with all the conditions for accepting repayable financing under Act no. 583/2004 Coll.,
• the loan is earmarked for a specific purpose related to the financing of the municipality's/town's investment needs,
• the security of the loan, including interest and fees,
• other conditions depending on the nature of the transaction, the applicant's knowledge and creditworthiness, (e.g. drawing up a notarial deed as a writ of execution on the property).

Required documents:

• written Loan Application Form including additional tabular attachments depending on the amount and type of loan requested,
• a certificate of election as mayor,
• resolution and signed minutes regarding approval of the loan application, approval of the loan security,
• the final accounts of the municipality/town for the previous year,
• the budget for the current year, taking into account the requested loan on the revenue side and the repayment of the loan principal and interest on the expenditure side, approved by the municipal/town council,
• documents to secure the loan.

I'm interested

Other forms of lending, such as bridging loans for projects from EU funds, loans for subsidy schemes from the state budget, loans from the State Housing Development Fund, EPC projects, purchase of receivables of supply contracts, revolving loans and others are provided available at Business Centres.