BOOK III: MUNICIPAL FINANCES

The Minister responsible for the economy and finance may, in the absence of special legislative provisions, grant to communes, in the event of temporary cash shortages, advances chargeable to Treasury resources up to a maximum amount set each year by the Finance Act. A decree in the Council of State determines the conditions and limits under which these advances may be granted.

The minister responsible for the economy and finance is authorised to grant advances to communes and communal public establishments that decide to take out a medium or long-term loan. Advances are repaid from the proceeds of the loan to be taken out and bear interest at the rate of that loan.