(Odesa City Council. PHOTO: fb page)
In Odesa, local authorities decided to take out a loan. The funds will be used to modernize medical facilities, build shelters in schools and kindergartens, develop energy infrastructure and repair roads.
The relevant decision was supported at the session of the Odesa City Council.
The loan of UAH 623.4 million is to be taken from Ukreximbank. According to the document, the loan should be issued in the form of a non-revolving credit line for up to 36 months. According to the draft decision, repayment will begin in February 2026 and last until September 2028. The interest rate is variable, but will not exceed 22% per annum. There are no additional fees or collateral, and all debt service costs will be covered by the city budget.
According to Mayor Gennadiy Trukhanov, Odesa has a budget deficit and without the loan, the city will not be able to function normally and provide the necessary security.
The city has repeatedly proved its ability to fulfill its obligations to creditors. We have trust," added the mayor.
According to Andriy Zarytsky, Director of the Finance Department, the funds will be used to develop infrastructure. Priority areas include the modernization of medical facilities, construction and overhaul of shelters in schools and kindergartens, installation of solar stations and energy saving systems. Also, funding will be provided for the overhaul of the road network, storm sewers, renovation of elevators in residential buildings, and strengthening of the coastline.
The official said that the attraction of loan funds to the budget of the Odesa city territorial community became necessary due to the growth of expenditures for the elimination of the consequences of armed aggression and support of the social sphere.
Unfortunately, the costs of these needs are increasing every year. The budget of the Odesa community for 2025 provides UAH 1.3 billion to eliminate the consequences of the war," he said.
"Dozens of projects have been allocated for the purchase of modern medical equipment for city hospitals, maternity hospitals, and primary care centers. In particular, the purchase of operating microscopes, endoscopic systems, biochemical analyzers, and rehabilitation equipment was envisaged.
Part of the loan funds will be used to equip shelters in more than 20 kindergartens and schools, as well as to build a new protective structure for Odesa Gymnasium No. 61. In addition, it is planned to modernize the city's energy infrastructure.
Thirty-four deputies voted in favor of the project, 2 voted against, and 0 abstained. The decision was made.
As Intent previously wrote, the news of the Odesa authorities' intention to take out a loan of more than UAH 600 million at 16.5% raises serious concerns - not only because of the amount or interest rate, but also because of the wartime context. In peacetime, a loan can be seen as a development tool, but now, when the economy is balancing on the edge of endurance, any debt burden should be as justified as possible.
The need to take out a loan in August indicates serious miscalculations in the budget. If there is a lack of money just a few months after the budget is approved, it is either negligence or an artificial "hole" for the loan.
Of particular concern is the fact that this initiative is being promoted by Mayor Hennadiy Trukhanov - he used to criticize loans as "evil" and now he is taking them himself, and under even worse conditions, which calls into question the logic and effectiveness of this decision.
Анна Літман