Bulgaria’s Pernik Seeks Interest-Free Loan of BGN 5 M from Central Budget

Politics » DOMESTIC | April 7, 2015, Tuesday // 09:10
Bulgaria: Bulgaria’s Pernik Seeks Interest-Free Loan of BGN 5 M from Central Budget Pernik Mayor Ivan Ivanov, photo by BGNES

Bulgaria’s Pernik Municipality seeks a short-term interest-free loan of BGN 5 M from the central budget in order to cope with debts.

The Pernik Municipal Council decided on Monday at an extraordinary meeting that the loan was a life-saving measure to ensure the further development of the municipality.

“The credit rating of the Pernik Municipality has reached freezing point,” said Pernik Mayor Ivan Ivanov, as cited by the Bulgarian Telegraph Agency.

He claimed that there was no banking institution that would be willing to lend the Municipality a single lev.

Ivanov suggested that the only solution to the problem was a loan from the central budget.

Milan Milanov, Chair of the Pernik Municipal Council, noted that the debts of the Pernik Municipality stood at over BGN 15.5 M.

He argued that the problems dated back to 1999, when receipts from income tax of large taxpayers had been redirected from municipal budgets to the central budget.

Milanov said that the Pernik Municipality had started running up debts since then.

He called for “painful” changes to the municipal administration and the budget for supplementary activities so as to stabilize the municipality.

 

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Tags: Pernik, Pernik Municipality, municipal budget, loan

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