
The government has imposed some new obligations on municipalities. The legal changes that were approved in the last parliamentary session introduce a new formula for the repayment of arrears.
According to the new law, the calculation of municipal debts will no longer be based on planned expenses, but on actual ones. Meanwhile, another change with the new law is the fact that no less than 30% of the funds remaining from the unrealized expenses will now have to be used to pay off the arrears.
The arrears have turned into a gangrene for the financial system of the country, while the debts to OSHEE created mainly by the water supply companies are the ones that have created the biggest financial holes in the municipalities.
The total arrears have decreased from 2016, where they stood at the level of 12.9 billion ALL, while at the end of 2022 it was reported at 5.9 billion ALL. Half of these obligations are created towards third parties for public investment projects. (2.9 billion ALL) The rest of the liabilities belong to unpaid services, court decisions and unpaid energy bills to OSHEE.
Meanwhile, due to obligations, 10 of the country's 61 municipalities are in a situation of financial difficulty, with obligations exceeding 25% of their planned expenses./TCh
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