The City Council of Belog Manastir adopted a decision by majority vote at today's session, granting Baranjski vodovod consent for a long-term loan of 500,000 euros. The loan will be realised with Hrvatska poštanska banka (HPB), with a repayment period of five years.
The aim of the loan is to settle inherited debts to suppliers and ensure the long-term stabilisation of the utility company's operations. The City of Belog Manastir holds an ownership stake of approximately 50 per cent in Baranjski vodovod. Belog Manastir Mayor Igor Pavelić emphasised that this is one of the decisions aimed at enabling stable operations for Baranjski vodovod.
Baranjski vodovod Director Ivana Khan took up her four-year mandate on 7 May. At the time of taking over management, the company had approximately 500,000 euros in inherited debts to suppliers. Measures implemented have reduced this amount to around 330,000 euros, and the remaining debt is to be closed with loan funds.
The company will repay its obligations to the bank over the next five years, with a monthly loan instalment of approximately 10,000 euros. No mortgage on the company's assets or guarantee from the City of Belog Manastir was required for the loan approval. The security instrument for the loan is a promissory note, and the bank's credit committee assessed that Baranjski vodovod can regularly pay the monthly instalments from its own operations.
The company has implemented stricter control of material expenditure, linking consumption to individual work orders. It has also intensified the collection of receivables from users who have not settled their obligations on time. The director stressed that without the loan, it would not have been possible to settle all existing debts to creditors in the short term.
