City of Moscow to borrow $570 mln from federal funds

Moscow Mayor Yury Luzhkov has signed a resolution to take out a federal loan of 16.5 billion rubles ($570 mln) to cover the city's budget deficit for 2009, a municipal government source said on Monday.

MOSCOW, October 26 (RIA Novosti) - Moscow Mayor Yury Luzhkov has signed a resolution to take out a federal loan of 16.5 billion rubles ($570 mln) to cover the city's budget deficit for 2009, a municipal government source said on Monday.

According to earlier reports, the Russian capital posted a 26.8 billion rubles ($926 mln) budget deficit in the first nine months of 2009.

The loan will be taken for three years.

On Friday, Luzhkov allocated 1.2 million rubles ($41,450) for the delivery of a humanitarian cargo to the former Georgian republic of Abkhazia.