The city of Tallinn drew €70 million in borrowings from the European Investment Bank (EIB) in May under a €100-million loan facility that it had used to the amount of €30 million in 2017.
"The budget of the city of Tallinn for 2020 provides for the possibility to borrow up to €35 million for a term of up to 25 years to finance investments, and to also use for the financing of investments the budgetary loan of €41.8 million planned under the budget for 2019, which was never drawn," said Katrin Kendra, Tallinn's financial director.
Hence, the city can borrow up to €76.8 million in 2020 to finance investments.
The agreement on the loan facility of €100 million was concluded with the EIB in 2017. The city borrowed an amount of €30 million under that facility in the same year, but did not tap into any of the borrowing options for the financing of investments set forth in the budgets for 2018 and 2019. The EIB loan continued to be available to the city for three years, until the end of May 2020.
"Considering that in the past two years the city has financed investments with own funds, the decision was made to draw the balance of the EIB loan facility, or €70 million, in accordance with the agreement as part of the sum total of borrowings set forth in the 2020 budget," Kendra said.
The money was received on May 19. It will be used to finance investments planned for 2020 and investments carried over from last year.
Editor: Kristjan Kallaste