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Rēzekne gets 5-million loan from state

On Tuesday, February 13, the government supported the granting of a EUR 5 million loan to the bankruptcy-prone municipality of Rēzekne, on the condition that the municipality will only receive the loan once it has submitted a 2024 budget without a deficit approved by the Ministry of Finance. This must be done by February 21.

Currently Rēzekne's planned draft budget is with a deficit of EUR 1.3 million. 

If the budget is not submitted and if the city municipality cannot perform basic functions such as maintaining schools, cleaning streets, paying salaries, the council will face dismissal, said Inga Bērziņa (New Unity), Minister of Environmental Protection and Regional Development.

“We have allowed Rēzekne to stabilize the financial situation, but we expect clear action so that the rhetoric that the government does not give or help will no longer play out. But Rēzekne needs to solve its own problems,“ emphasized Prime Minister Evika Siliņa (New Unity).

According to the draft budget for 2024 submitted on January 19 , which was prepared at the request of a Commission specially established by the Minister for Finance, the municipality of Rēzekne needs a loan of 5.35 million, including 4.2 million euro to cover arrears without fines. 

The maturity of the loan is up to 15 years.

The Ministry of Finance and the Commission specially established by the order of the Minister of Finance will request the municipality of Rēzekne to submit quarterly reports on the financial situation and progress in the improvement of the budget, to report monthly on arrears and cash balances.

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