Debts of Bulgarian Municipalities at BGN 160 M by end-June 2013

Bulgarian municipalities ran up debts amounting to BGN 160.1 M by June 30, 2013.

The debts were accumulated by 146 out of a total of 264 Bulgarian municipalities, according to a report of the Finance Ministry on the financial condition of local authorities in H1, 2013.

Debts of municipalities by June 30, 2013 decreased by BGN 19 M from June 30, 2012, and by nearly BGN 14 M from end-2012, and increased by BGN 3.5 M from March 2013.

In the first half of 2013, 108 municipalities reported year-on-year decreases in debts by a total of over BGN 43 M.

Meanwhile, 61 municipalities reported an increase in debts by a total of BGN 24 M, and the remaining 91 municipalities ended H1, 2013 without debts.

In the sphere of activities delegated by the state, municipalities' debts amounted to BGN 5.4 M, or 3.3% of the total amount.

Municipal debt and municipal guarantees by June 30, 2013 stood at BGN 911.9 M.

The internal debt amounted to BGN 440.7 M (48.3%), and the external debt stood at BGN 471.3 M, with the Sofia Municipality accounting for a share of 50.1% of the total of municipal debt.

Compared to end-2012, municipal debt and municipal guarantees fell by BGN 67 M, owing to the reduction by BGN 34.4 M in internal loans and the reduction by BGN 32.2 M in external loans.

According to data presented by Bulgarian municipalities, the total indebtedness fell to levels of 41-45% of the own revenues and the equalization subsidy.

Within H1, 2013, there was a steady trend for stabilizing the level of debts at 7-8% of the own revenues and the equalization subsidy for municipalities.

On a cash basis, the balance of municipal budgets by June 30, 2013 was positive and amounted to BGN 359 M.

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