Borrowing Schedule Adjusted According to Construction Timeline
Minimizing Interest Burden and Ensuring Sound Fiscal Management
Geumsan County has decided to borrow 7.5 billion won, the amount needed for this year, out of the approved 33.4 billion won in local bonds for 2025, from its treasury bank, NongHyup, at an interest rate of 3.5%. The remaining amount will be carried over and borrowed in 2026 according to the progress of the projects.
This measure is intended to alleviate the interest burden associated with large-scale local bond issuance by adjusting the borrowing schedule to match the actual timing of funding needs.
The local bond-funded projects, the construction of the Happiness Dream Center and the relocation and new construction of the public health center, were originally scheduled for completion this year. However, as the construction period for the public health center relocation has been extended, the borrowing schedule for the local bonds has been adjusted to align with the actual funding requirements.
For the repayment of the local bonds, 3.3 billion won has been allocated in the 2026 main budget for principal and interest payments, in line with the county's fiscal conditions. The county plans to continue repaying the bonds systematically each year, taking the budget situation into account.
Previously, in March of this year, the county obtained the council's approval for the issuance of local bonds, and in April, the total amount of 33.4 billion won in local bonds was finalized in the second supplementary budget.
Jang Yurim, an official from the Planning and Budget Division, stated, "By adjusting the borrowing schedule to match the actual funding needs, we aim to reduce the interest burden and enhance the county's fiscal soundness. We will do our best to ensure that key projects for the health and welfare of county residents proceed without any setbacks."
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