Radom will issue bonds worth PLN 100 million. The City Council approved the decision even though some councilors voted against it.
The money will go to education. City Treasurer Sławomir Szlachetka explained that the main shortfall is in funds for the pay of education workers, including teachers. He pointed to years of underestimating the education subsidy from the state budget as the cause.
The bonds will be issued in three series: PLN 50 million, PLN 25 million and PLN 25 million. The last series may not be needed if budget execution through the end of the year allows it. Redemption is planned for 2027–2040.
Councilors from Law and Justice (PiS) voted against the issue. Adam Bocheński warned that the city’s debt is approaching PLN 1.6 billion and that repaying PLN 100 million could ultimately cost about PLN 160 million. The total cost of the bonds depends on factors including the level of interest rates.
Pictured: Radom’s city hall. Photo: Voytek S / Wikimedia Commons, CC BY-SA 2.5
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