40 Bulgarian municipalities with blocked bank accounts because of the Municipal Debt Act

Nikolay Kotsev
Lili Mircheva

The bank accounts of some 40 municipalities are blocked because of the Municipal Debt Act, stated yesterday at the 12th General Meeting of the National Association of Municipalities in Republic of Bulgaria (NAMRB), Nayden Zelenogorski, Mayor of Pleven. He announced that the Association will refer the Act to the Constitutional Court since as a result of it, municipalities cannot implement basic activities such as financing of kindergartens and the healthcare sector.

Imminent bankruptcies by May

Municipal hospitals are doomed to forced bankruptcies as early as May, it became clear during the meeting.

NAMRB decided that a monitoring group of six people will draw up a protest declaration, which will most likely  be submitted today to the Council of Ministers, the National Health Insurance Fund (NHIF), the Ministry of Health and all other institutions involved in the set claims.

Mayors demand to meet with Borissov

According to Dora Yankova, the Council for Decentralization is not performing well and the Prime Minister Boyko Borissov, will be informed. Currently, according to the municipal councilors, there is a strong centralization.

The meeting clarified that the top NAMRB's priorities for 2011 include the effective and transparent utilisation of EU projects as well as the continuing efforts for reform of the local finance system. NAMRB reported that no reforms were implemented in the Local Taxes and Fees Act and the GERR (Citizens for European Development of Bulgaria) government failed to pay any attention to their proposals for amendments.

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