Purpose of the loan:

  • The loan is intended to balance the time lag between revenues and expenditures in the current budget of towns, villages or higher territorial units (i.e. “self-governing regions”, hereinafter referred to as “HTUs”) during the financial year.

Use of the loan:

  • on the client’s current account up to the amount of the approved credit line

Maturity period and repayment of the loan:

  • pursuant to Act No. 583/2004 Coll. on Budgetary Rules of Self-governing Territorial Units and on Amendments to Certain Acts, the loan must be repaid by the end of the budgetary year;
  • the loan is repaid in a lump sum or by gradual reduction of the credit line.


  • a preferential loan fee;
  • the consideration for the reservation of the funds not granted does not apply;
  • other fees are set according to the Price List of VÚB, a.s.

Loan collateral:

  • Minimum collateral: assessed on a case-by-case basis

Terms and conditions for granting a loan:

  • demonstrating the ability to repay the loan, including interest and fees, within the required maturity period and under pre-agreed conditions;
  • a written confirmation of compliance with all conditions for receiving recoverable financial resources in accordance with Act No. 583/2004 Coll., which is issued and signed by the comptroller general (i.e. the chief financial controller) of a village/town/HTU;
  • a special-purpose nature of the loan – the bank provides a loan to cover the operational needs of a village/town/HTU;
  • loan collateral, including interest and fees;
  • other conditions depending on the nature of the business, knowledge and creditworthiness of the applicant (e.g. making a notarial record as a writ of execution for a property).

Required documents

  • a written Loan Application, including additional table annexes, depending on the amount and type of the loan an entity applies for and the type of the business entity/applicant;
  • a certificate of mayor appointment;
  • a certificate of registration and assignment of an identification (registration) number;
  • a resolution and signed minutes concerning the approval of the loan application, the consent to the loan collateral and to the issuance of a notarial record and/or to the signing of a blank bill;
  • a detailed budget and audited financial statements for the last two financial years and current financial statements for the last six months;
  • an approved budget management plan of a village/town/HTU for the relevant year,
  • documents necessary for the loan collateral.
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