The process is supported by a group of experts of the Independent Analytical Center “Expert-Grup” within the framework of the project “Strengthening the sustainability of local self-governments”, implemented with the support of the Embassy of the Kingdom of the Netherlands in the Republic of Moldova.
Victoriabank will be the financial partner responsible for the intermediation of the municipal bonds issue. On May 12, the contract on financial intermediation was signed.
Vitalie Vrabie, Mayor of Ungheni, said on this occasion: “We are celebrating an important moment for the municipality – the signing of the contract, which gives the Municipality access to a new and modern financing instrument – municipal bonds. For the local administration, this project means more than just a financial solution. It means the possibility to make concrete, visible and necessary investments for citizens, especially in the area of infrastructure and road repairs, faster, without putting an excessive burden on the local budget. It is a new step for the mayor’s office, but also a bold step towards diversifying funding sources and towards a more efficient administration that seeks modern solutions for the development of the city.”
According to the draft decision prepared by Ungheni Municipality, the funds raised through the issue of municipal bonds will be used for the construction and repair of local roads. The issuance process will be carried out in accordance with the provisions of the legislation on capital market, and will include all the necessary stages of approval, preparation and implementation of the issue.
Municipal bonds are a modern financial instrument that provides local governments with an opportunity to raise resources for strategic investments in infrastructure and local development on flexible and transparent terms.
