Section 2: Financial provisions

The Minister for the Economy and Finance may grant the local authority, in the event of a temporary shortfall in the latter’s cash position, 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 the local authority and the local authority’s 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.