The sum available for loans will not exceed 500 million lei (EUR115 million). Loans are guaranteed for one year and the money will be refunded in monthly tranches. The interest rate was set at 5.5%.
According to the draft normative act, loans will be granted from privatization money deposited in the Treasury.
A Government ordinance approved in 2010 enabled local authorities to take out treasury loans to pay overdue heating bills amasses by December 31, 2009. The sum allotted by the Government amounted to RON1.5 billion.
Under a normative act approved last spring, the loan also covered debts registered at the end of 2010.
Debts to heat suppliers amounted to RON928 million at the end of September 2011, and 88.6% of them were registered by local authorities. (EUR1=RON4.3514)