Jarosław will borrow over PLN 30 million for debt restructuring

On June 16 this year, councilors gathered in the town hall conference room to consider the financial report and the report on the implementation of the city budget for the past year and to adopt a resolution on granting discharge to the mayor of Jarosław, Marcin Nazarewicz. The discussion on finances also resounded during the vote on the resolution on taking out a loan of over PLN 30 million, which is to be used to reduce the costs of servicing the existing debt.

The so-called discharge session was full of discussions about money. The most important issue was of course the vote of confidence and discharge for the incumbent mayor Marcin Nazarewicz, preceded by the presentation of the report on the state of the city government for 2024, in which the change of power took place. As emphasized, the most important challenge of the past year was to stabilize the city's financial management due to the underestimated budget and overestimated revenues, mainly from the sale of property. In this part of the discussion, the topic of merging cultural units in the city, which had already been raised many times during the session, returned. It was raised during the discussion on the possibility of obtaining funds. It was wondered whether it would not be a formal obstacle to such actions. Finally, the council voted to grant absolutorium (15 councillors "in favour", 2 abstentions - Dorota Batiuk-Jankiewicz and Jarosław Litwiak), and earlier it granted a vote of confidence to M. Nazarewicz (13 councillors "in favour", 4 abstentions - Dorota Batiuk-Jankiewicz, Jarosław Litwiak, Bożena Łanowy, Jolanta Makarowska), and the mayor of the city thanked for the past year, which he described as difficult in many respects.

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– I understand that different visions of city management clash in local government. I am glad that, with hindsight, the program that I proposed together with a group of councilors supporting me is working and we are slowly stabilizing what is happening in city finances and urban space – he said.

He also thanked them for their substantive cooperation.

The loan is supposed to bring savings

The topic of finances also came up during the discussion on the resolution to take out a long-term loan in the amount of PLN 30.32 million this year, intended to fully repay previously incurred liabilities under long-term loans. In other words, the city decided to restructure its existing debt in order to reduce its financial burden and improve its budget situation. The entire operation is intended to reduce the total cost of debt service during the repayment period (the city assumes early repayment of the existing debt by taking out a new loan with lower service costs). The liability under the loan taken out, together with the total cost of debt service, is to be covered from the city's own budget revenues in the years 2026-2037.

What is the current status? The city currently has...

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Updated: 21/06/2025 19:55

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