Brussels Regional Fund for Municipal Treasury Refinancing
Municipalities facing financial difficulties can request a loan from the Refinancing Fund. This Fund is a 'first-category autonomous administrative body' under the authority of the Minister responsible for Local Authorities. When applying for a loan, municipalities must develop a financial plan. Regional Inspectors ensure the proper execution of this agreement.
Help in case of difficulties
The Regional Fund for Municipal Treasury Refinancing (FRBRTC) grants loans to local authorities in financial difficulty. These loans are intended to help local authorities pay off their deficits and improve their cash flow. Communes can also call on the Refinancing Fund to better coordinate communal activities, as was the case in 1995 with the reorganisation of several hospitals within the IRIS structure.
Better financial management
To obtain a loan, the local authority must draw up a financial plan, setting out the measures it intends to take to structurally improve its financial situation. The calculation of these measures must be sent, together with the loan application, to the Government of the Brussels-Capital Region, which must approve the financial plan and the related loan agreement.
Regional control mechanisms
Loans from the Refinancing Fund run for 20 years and have a fixed annual maturity. The loan agreement between the municipality and the Refinancing Fund describes the control measures that accompany the loan. Regional inspectors monitor the execution of the loan agreement throughout its term.
The Fund's remit was extended in 2002: since then, it has acted as a "financial coordination centre" for the municipalities and CPASs of the Brussels-Capital Region.
Legal basis
The creation of the Fonds régional bruxellois de refinancement des trésoreries communales was laid down by the Ordonnance of 19 March 1993, amended by the Ordonnance of 2 May 2002. The Ministerial Decree of the Brussels Government of 27 June 1994 entrusts Brussels Local Authorities of the Brussels Regional Public Service with the management of the Fund.