With bullet loans, the “hard end” in the form of repayment comes at the end, thus providing more liquidity during the term – but it comes. Of course, the Offenbach treasurer knows this too. But for him, the question is whether he will even be able to get the loans he needs for the urgent renovation and new construction of schools, for example, given the situation that has been made worse by higher interest rates, higher social costs and economic downturn.
Given the need to save money, it would be cruel to actually close the town hall, which is in need of renovation, but it is doable. It would be sinful not to build schools for children who need nothing more than education, and places where they can receive this education according to the latest standards. Therefore, the right way to raise money is to use methods that have been tried and tested elsewhere, such as “green” bonds.
At the same time, Offenbach and the many other cities in need must continue to fight against the ongoing imbalance in local government financing. The federal and state governments must bear a larger share of the costs that arise in local governments due to obligations, particularly those arising from social legislation.
