Municipal Bond Loans (BOC) to Fund Local Projects in Castiglione

Soon, the municipality will issue the so-called Boc, bond loans through which citizens can access financing to fund public expenditure. The resolution, revolutionary for municipal fundraising, could be on the agenda of the council meeting at the end of May. These are ordinary bonds, similar to BTPs (Buoni del Tesoro Poliennali), with durations varying from 3 to 5 years, offering interest rates aligned with those of the Treasury.

Citizens, by purchasing the Boc, will assist municipal finances. It is mentioned that a tranche of two or three billion euros will be used to finance some public works. This is an experience to be tested in practice, even though other cities have been collecting funds through this system for several years. An increasing number of projects are needed in a town like Castiglione, which has a high rate of immigration and a growing need for spaces dedicated to culture and the elderly.

Projects and Confirmer

This is how the idea of the Boc was born, confirmed by Mayor Sigurtà and the budget councilor, Innocente Sereni. “The establishment of these bond loans — explains Sereni — could be decided as early as the next council meeting. The money will fund the projects without the need to incur debt with Cassa Depositi e Prestiti. For example, I am thinking of the renovation of Palazzo Menghini, which will be tendered out in July.”

The former kindergarten requires a massive conservative intervention, for which an initial tranche of 1.2 billion euros has been prepared. “The Boc could also be used to complete the integrated day center for the elderly and the municipal archive, which is located at Palazzo Gonzaga,” adds Sereni. Now, it remains to be seen whether the project will come to fruition.