Kielce seeks to consolidate 354.5 million PLN in municipal debt

The city of Kielce is revisiting plans to consolidate a portion of its debt, totaling 354.5 million PLN. Mayor Agata Wojda intends to request council support to refinance old obligations, aiming to defer the repayment of high credit installments originally taken during a previous administration.

The restructuring is intended to free up funds for investments, specifically targeting projects that can secure financing through the Security and Defense Fund. This program offers preferential terms, including low interest rates and the possibility of forgiving up to 20 percent of the loan value. While the consolidation is expected to increase debt service costs by approximately 30 million PLN in margins over a 22-year period, the administration maintains that the long-term benefits outweigh these costs. Due to changes in investment plans, the city has canceled a planned connector between Witosa and Orkana streets following a lack of approval from the Ministry of National Defense, shifting focus toward renovating a municipal section of national road No. 73.