Bulgaria's Municipal Debt Shrinks by EUR 100 M Y/Y

The Bulagrian Ministry of Finance revealed Tuesday a fiscal assesment of the country's municipalities conducted under a new methodology.

The cities of Burgas, Ruse, Stara Zagora, Blagoevgrad and Dimitrovgrad have been dubbed as best fiscally disciplined for 2012.

The small town of Shabla on the far north of Bulgaria's Black Sea coast has been described by FinMin Simeon Djankov as doing best financially overall.

On the other end of the table are the cities of Kystendil, Karlovo, Kardzhali, Vidin and Pazardzhik.

According to statistics by the Finance Ministry, debts of municipalities to the state have shrunken with some BGN 205.1 M, compared to the same time last year.

As of June 30, 2012, these debts amounted to BGN 179.2 M.

"Such information using the new methodology will be published every quarter and disciplined municipalities will be rewarded," stated Djankov.

Vice-Minister of Finance Vladislav Goranov further explained that the methodology uses indicators for financial independence, financial sustainability, effectiveness, and investment activities.

End of June the municipalities in Bulgaria with the largest overdue debt were Pernik (BGN 13.3 M), Kardzhali (9.5 M), Vidin (7.7 M), Dupnitsa (7.5 M), as well as capital Sofia (BGN 7.1 M).

Sofia, however, has been the municipality that reduced by most its overdue debt for the period.

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