Debt of Towns in Bulgaria Grows by 33% in 2010

Debts of municipal authorities in Bulgaria assembled in 2010 have grown with 33% with respect to 2009, according to a study by Bulgaria's National Audit Office.

The total loans of municipalities by the end of 2010 amounted to BGN 842.45 M, with BGN 1.5 M of that being overdue credits, announced the Audit Office Monday.

According to the study, during 2010, a total of 101 local authorities in Bulgaria have taken up new debts.

For that year, 32 Bulgarian municipalities have increased their debts with more than 50%, with 22 of them having their debts at least doubled.

For 82 municipal authorities, there is an increased risk for servicing their debts through 2013, warned the National Audit Office.

In 30 of those cases, due payments on credits are more than 100% of municipal revenue.

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