Debt of 12 Bulgarian Municipalities Increases by 500%
According to data of the Bulgarian National Audit Office, 56 municipalities face financial difficulties due to large installments for the repayment of their debt, small revenues and weak control.
The amount of municipal debt has increased by 50% in 43 municipalities. There are 12 municipalities where debt has increased by 500%. These include Kameno, Karnobat, Suvorovo, Asenovgrad, Rodopi, Sopot and Dve mogili.
The National Audit Office noted that, with respect to most municipalities, the ratio between own revenues and debt installments is unbalanced.
Last year, the Finance Ministry approved legal changes in order to help municipalities achieve financial rehabilitation. Despite the fact that there is an option for interest-free credits to be granted by the state, not a single municipal financial rehabilitation plan has been approved so far.
- » Bank Deposits Of Bulgarian Households Keep Growing in March
- » Funds Contracted Under EU Exceed 40%
- » International Monetary Fund Increases Expectaions on Bulgarian Economy
- » BNB Reports Current Account Surplus
- » Household Incomes Grows Faster Than Expenses
- » Unemployment Rate Down by 1.9% Over One Year