Long-Term Bank Loan for Budget Deficit

The Municipality of Łazy is seeking a long-term bank loan of 4,500,000 PLN to finance its planned budget deficit for 2025 and to repay previously incurred obligations. The loan will be disbursed in up to two tranches in 2025, depending on the municipality's needs. The final date for utilizing the loan is December 31, 2025, with a repayment period extending until December 30, 2033. The contractor will open a credit account by the contract signing date and will manage it free of charge during the contract period. The loan funds will be available on the contract signing date, and the contractor will release the funds as requested by the municipality without requiring separate loan applications. The municipality can utilize a lower amount than 4,500,000 PLN without incurring additional costs. Interest will not be charged on the undisbursed loan amount, with a minimum loan amount of 3,000,000 PLN. The municipality has the right to submit a written statement to withdraw from further loan utilization. The loan will be secured by a blank promissory note. Repayment will occur in quarterly installments, with a grace period for capital repayments until March 29, 2026. Interest will be calculated quarterly and paid by the 10th day of the month following the accounting period. The interest rate will be based on the 3-month WIBOR rate adjusted by the contractor's margin. The first interest period will start from the loan disbursement date.