Tallinn mayor Mihhail Kõlvart (Center) said Wednesday said that getting the loan was helped by the city's current finances, which he said were in good shape.

"Tallinn's financial behavior has been conservative, which gives us an opportunity in the current difficult time to use reserves and also to take out a loan," Kolvart said. 

Kõlvart said it was clear that a need to borrow has emerged, with Tallinn intending to borrow €76.8 million from the European Investment Bank (EIB) this year.

This money will be used primarily in investment, Kõlvart said, adding that the city would draw up a supplementary budget in early June.

"At the beginning of June, we will come up with a supplementary budget whose main topic is cost-saving, to allow us to have assets to cover necessary operating costs. It has to be understood that our income base will start to decline, and for that we need to review all operating costs and optimize the needs of the city," the mayor said. 

He added that at the same time, a reserve has to be created to cover additional costs and ensure the continuation of investments.

Tallinn city's budget for 2020 was set at €824 million last December.

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