Because of rising interest rates.
The municipality of March will bring forward a borrowing of 2.2 million euros provided for in the budget. This is intended to prevent high interest rates from becoming due if money is only raised on the capital market at a later point in time.
Borrowing of up to 2.2 million euros is planned for this year in the approved budget. Among other things, it should serve to cover the costs for the expansion of the community school and the renovation of the chapel path in Neuershausen. However, one does not want to wait until bills are due in a few months, but rather get the money now in view of rising loan interest rates, explained Mayor Helmut Mursa at the council meeting. Offers were obtained, the cheapest was 2.19 percent interest with a term of 30 years.
In 2020, the interest rate for a loan of two million euros with a term of 30 years was 0.45 percent; other loans of 3.4 million that were taken out earlier were available at zero interest. And since interest rates would continue to rise, Mursa advised that borrowing should not be delayed. Even if you can’t spend the money immediately, but have to store it in an account, the step is worthwhile, even if storage fees are due. The municipal council unanimously approved the planned borrowing in May.
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