Faced with enormous infrastructure costs in the near future, the city of Prague is pushing for the right to raise its debt limit. Hospodářské noviny writes that the city’s expenses in 2020 will be CZK 77.6bn, of which a full CZK 59bn will go towards standard items, leaving just CZK 17bn for investment. This is just a fraction of the amount that will be needed for preparation work to go forward on the inner ring road and the planned metro D. Faced with the prospect of having to fix its existing infrastructure, including its crumbling bridges, it will have to increase the amount it’s allowed to borrow. At the moment, Prague’s debt is allowed to rise to 60 percent of its 4-year average revenues. With two bonds due to be paid off within four years, the city will soon be able to borrow up to CZK 35bn, but it will need more than twice this amount. HN reports the city is therefor counting on increased support from the state for some of its most important infrastructure investments.
