Mayor of Pernik Declares Municipality Is Bankrupt
The mayor of the Bulgarian city of Pernik Ivan Ivanov declared that the municipality has gone bankrupt.
Ivanov who assumed office on November 17 announced this at a pressconference, Darik radio reports.
The causes for the heavy financial situation are the seizures which amount to almost BGN 6.3 million.
Ivanov revealed that 2-3 firms have financial claims towards the municipality on a daily basis, which it is unable to fulfill.
According to the mayor of Pernik the situation is catastrophic with the overdue payments that amount to BGN 16 million.
At the same time the revenue section of the budget has been fulfilled at 59 %, with BGN 20 000 entering the municipal treasury on a daily basis, with which the municipality is not able to function properly.
Ivanov accused his predecessor and current deputy chair of Parliament Rositsa Yanakieva and her team for excessive spending, which might result in the municipality's inability to pay the salaries of its officials.
Yanakieva dismissed the accusations, hurling criticism at Ivanov's inability to secure the normal work rhythm of the municipality.
The mayor also mentioned the diversion of BGN 200 000, which had been allocated for education.
Ivanov informed that following his election as a mayor, the previous governance launched an attack against him, spearheaded by former deputy mayor of Pernik Ilinka Nikiforova.
The mayor said that that there is a decision of the Finance Ministry to grant an interest-free credit of BGN 2.2 million, but the municipality is in urgent need of BGN 1 million to deal with the payments due to its officials.
Ivanov publicly appealed to Prime Minister Boyko Borisov and Finance Minister Vladislav Goranov for their cooperation in ensuring the necessary minimum of funds which is urgently needed.
The incumbent mayor assured that the governance model will be reformed, especially the control of expenses in order to ensure the effortless work of the next mayor of Pernik.
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