The Walloon Government is exploring various options for municipalities struggling to secure funding as Liège, Charleroi, and Mons risk missing out on key funding.
The Oxygen Plan was brought in to assist the 27 poorest Walloon cities and municipalities as a scheme designed to help struggling Walloon municipalities rebalance their finances through a five-year loan.
Belgian bank Belfius is refusing to finance the cities of Mons, Liège, and Charleroi, according to reported various French-speaking media outlets on Thursday.
The bank cited financial criteria for its decision, but in the case of Mons, it said that the arrival of the Belgian Workers’ Party (PTB) into power following the local elections results has also played a significant role.
Walloon Minister for Local Authorities François Desquesnes (Les Engagés) stated on Thursday that the required €233.895 million is not easily found, following a government debate on the issue.
Initially, only ING responded to the tender for the Oxygen Plan. However, the bid covered only 2024 (€82.2 million of the requested €356 million), which could meet the needs of 20 municipalities.
In a second tender, Belfius offered to finance €26.8 million for four cities: Verviers, La Louvière, Ath, and Namur. Consequently, three cities were left without funding, requiring a total of €233.895 million, of which €20 million was for Mons, with the remainder equally distributed between the heavily indebted Liège and Charleroi.
Minister Desquesnes considers this a "wake-up call" as such a large sum is difficult to source. At a press conference following the Walloon council of ministers, he mentioned that all options were being explored, including a regional loan to the affected cities, where the region borrows the amount from the banks.
Minister-President Adrien Dolimont emphasised that they are committed to finding solutions by 31 December.
When asked if Belfius refused to finance Mons due to the the Belgian Workers' Party joining the ruling coalition, the MR politician declined to comment, stating: "It is not our place to respond. However, a bank lending money wants to be sure of the borrower’s solvency."
