2010 Annual Report
Loan guarantee: Subject to the limits established by decentralisation laws, cities are allowed to guarantee loans taken out by public or private bodies. This ensures that the loans will be repaid in the event that the borrower should default.
Outstanding loans guaranteed at 31 December 2010: €33.0 M, i.e. €113 per inhabitant.
In order to obtain loans from banking institutions under the best terms, certain bodies which contribute to the implementation of the municipal policy, ask the City to act as guarantor for those loans.
- The total of outstanding guaranteed loans dropped sharply, going from €37.8 M at 31 December 2009 to €33.0 M at 31 December 2010 (i.e. €113 per inhabitant). These loans concerned 33 institutions, including hospitals (€12.8 M), medico-social institutions (€9.6 M) and semi-public companies (€8.6 M).
- New guarantees granted by the Municipal Council in 2010 amounted to €2.4 M.