20.11.2013

Municipal arrears amount to BGN 162.2 million as of 30 September 2013 and drop by BGN 11.5 million compared to 31 December 2012. They are formed by 144 or 54.5% of the total number of municipalities across the country. This is what the Ministry of Finance data about the financial indicators of municipalities show. 102 local authorities report a delay in the late payments for the first nine months of 2013 compared to the same period of 2012, with the overall reduction amounting to almost BGN 31 million. The local authorities that have increased their late payments by a total of BGN 20 million as of 30 September are 58, while the remaining 104 municipalities, or 40% 0f their total number, have ended the nine months of 2013 without any change in their arrears. State mandate arrears amount to BGN 4.5 million, or 2.8% of their overall amount.

On a current basis through 2013 there has been a steady trend of containing the level of arrears which in the last quarter has been around 10% against the own revenue and the equalising subsidy of municipalities. The municipal budget balance on a cash basis is positive as of 30 September 2013 and amounts to BGN 244 million.

Municipal debt and municipal guarantees amount to BGN 919.1 million as of 30 September 2013 which includes domestic debt of BGN 450.5 million and external debt of BGN 468.6 million, with Sofia Municipality accounting for 48.8% of the overall municipal debt and guarantee amount. Compared to end-2012, municipal debt and municipal guarantees decrease by BGN 58 million, which is due to the reduction of domestic debt by BGN 23 million and of external debt by BGN 34.9 million.

Arrears by districts:

Dynamics of the total amount of arrears as follows:

* The 2013 data reported by municipalities are preliminary and are based on the brief reports on municipal budget execution as of 30.09.2013.

The indicators monitored are:

• Share of own revenue in the overall municipal proceeds;
• Own revenue coverage of local mandate activity costs;
• Budget balance difference compared to overall revenue;
• Amount of debt as a percentage of own revenue and equalising subsidy according to plan;
• Arrears as a percentage of own revenue and equalising subsidy according to plan;
• Share of wage bill and social security contribution costs in the overall expenditure;
• Relative share of expense liabilities and commitments compared to the average annual amount of municipal costs in the last 4 years.