Dorin Chirtoaca projects foreign investment in Chisinau will rise

Foreign investment in Chisinau is expected to increase in 2012 following the collection of larger incomes into the municipal budget. Mayor of Chisinau Dorin Chirtoaca said that when the revenues rise, the Chisinau administration can become a reliable loan repayment guarantor for foreign backers, Info-Prim Neo reports. “When the municipal budget increases by about 30%, the foreign financial institutions will be able to provide larger financing for developing the municipality. A guarantee will appear that the City Hall will be able to cover these costs and repay the loans,” said Dorin Chirtoaca. He also said that the European Investment Bank expressed readiness to offer a loan of €17 million for the thermal insulation of buildings in Chisinau and for the repair of another ten streets in the municipality. “The municipal administration now has the capacity to accumulate financial resources for long-term development, especially in the area of infrastructure,” said the mayor. The budget of Chisinau municipality for 2012 will be by 30% larger. The largest revenues will come from the income tax paid by legal entities – over 1 billion lei of the projected incomes of 2.473 billion lei. The revenues from the realty and road taxes are also expected to increase. The draft municipal budget is to be examined in a meeting of the Chisinau Municipal Council, which has not yet convened after the first constitution meeting following the June local elections.