The Riga City Council plans to borrow up to 84.46 million euros for the repair of the Cable-Stayed Bridge, as evidenced by the decision project supported today at the meeting of the Committee on Financial and Administrative Affairs.
If the new debt is divided by the number of residents in Riga, each resident will owe 142 euros. For a family of four, that amounts to 568 euros.
This includes up to 6.7 million euros needed in 2026, up to 42 million euros in 2027, and up to 35.76 million euros in 2028. The loan repayment period will be up to 30 years with a deferral of the principal payment for up to three years. The annual interest rates are not yet known, but it is clear that banks will be able to earn a couple of dozen million euros from Riga.
The final decision on borrowing is to be made at a meeting of the Riga City Council.
It should be noted that several years ago, the budget of Riga ceased to be surplus. In 2019, the capital's revenues amounted to 1,011.7 million euros, while expenditures were 972.1 million. The first year in which the budget was fully formed under the leadership of Mārtiņš Staķis – 2021 – showed revenues of 984.8 million and expenditures of 960.2 million. Modest, but still decent.
However, the year 2024 under the leadership of Vilnis Kirsis already embodies living on credit: with significantly increased revenues, up to 1,399.9 million, expenditures amounted to 1,433 million.
With new loans for the bridge, Riga will be mired in debt under the mayor Viesturs Kleinbergs.
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