Cluj-Napoca takes out 300m RON from CEC over 30 years

The Cluj-Napoca city hall has contracted a 300 million-RON (around 71 million-euro) loan from CEC Bank over 30 years to cover planned or ongoing investments.

Originally, the Cluj authorities intended to contract a 600 million-RON (around 142 million-euro) loan, after holding talks with representatives of CEC Bank and the BCR, the only two banks that submitted lending offers. Following negotiations last week between representatives of the Cluj city hall and officials of the two banks, CEC Bank’s offer was accepted.
“On December 21st we will sign the contract with CEC Bank, which entails the granting of a 300 million-RON loan, over a minimum of 30 years, with the overall cost of the loan being over 400.2 million RON. The grace period is of a maximum of four years, the period for drawing the loan will amount to least four years, with the possibility of extending it, without additional costs,” Oana Buzatu, spokesperson of the Cluj-Napoca city hall, told ZF Transilvania. The loan has an interest rate 2% above the arithmetic mean between ROBOR and ROBID (interbank interest rate on loans/deposits).