Bulgaria to Introduce Financial Stability Rating for Municipalities

Bulgarian Finance Minister Simeon Djankov has announced that the draft of a financial stability rating for municipalities is to be ready by end-June. Photo by Sofia Photo Agency

Bulgaria's Finance Ministry will come up with a draft of a financial stability rating for municipalities by the end of July, according to Finance Minister Simeon Djankov.

Speaking in Parliament on Friday, he explained that the National Association of Municipalities in the Republic of Bulgaria (NAMRB) was expected to present a methodology for introducing financial discipline into municipal budgets.

"I am in favor of financial decentralization but we need a mechanism for undisciplined municipalities," Djankov stated.

He cited statistics indicating that Pernik, Kardzhali, Vidin and Dupnitsa were the most indebted municipalities, with liabilities amounting to BGN 13.5 M, BGN 9.5 M, BGN 8 M and BGN 7.5 M, respectively, by end-June.

"Whatever financial model is applied in these municipalities, they have already accumulated debts that cannot be settled over time without a new policy and without financial discipline," Djankov emphasized.

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