MUNICIPAL ARREARS ARE BGN 160.1 MILLION AS OF 30 JUNE 2013
13.08.2013
Municipal arrears amount to BGN 160.1 million as of 30 June 2013. They are formed by 146 out of a total of 264 municipalities across the country. Local government late payments as of 30 June 2012 decrease by BGN 19 million compared to 30 June 2012, by almost BGN 14 million compared to end-2012 and increase by BGN 3.5 million compared to March 2013. This is displayed in the information about the financial indicators of local governments as of the first half of 2013 drafted by the Ministry of Finance. 108 municipalities report a decrease in arrears by a total of over BGN 43 million in the first half of this year compared to the same period of last year. The local authorities that have increased their late payments by a total of BGN 24 million are 61, while the remaining 91 have ended the half-year of 2013 without any arrears. State mandate arrears amount to BGN 5.4 million, or 3.3% of their overall amount.
Municipal debt and municipal guarantees amount to BGN 911.9 million as of 30 June 2013. Domestic debt is BGN 440.7 million (48.3%) and external debt is BGN 471.3 million, with Sofia Municipality accounting for 50.1% of the overall municipal debt amount. Compared to end-2012, municipal debt and municipal guarantees decrease by BGN 67 million, which is due to the reduction of domestic debt by BGN 34.4 million and external debt by BGN 32.2 million. The data submitted by the municipalities show a reduction in the overall indebtedness to the levels of 41-45% compared to the own revenue and the equalising subsidy.
During the half-year and on a current basis through 2013 there has been a steady trend of containing the level of arrears which in the last two quarters have been around 7-8% against the own revenue and the equalising subsidy of municipalities. The municipal budget balance on a cash basis is positive as of 30 June 2013 and amounts to BGN 359 million.
*The 2013 data reported by municipalities are preliminary and are based on the brief reports on municipal budget execution for the first half of 2013.