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  • Local government must pay overdue debts by the end of February

    The Ministry of Interior announced on Monday that municipalities and local governors will have until the end of February 2014 to pay off their overdue debts towards third parties.

    The two-month extension was granted after Minister Yannis Michelakis discussed the matter with his colleagues at the Ministry of Finances. The outstanding debts of local government in 2013 were estimated to be about 763 million euros, of which only about 634 million have been paid back.

    As such, municipalities and regional governors will have to pay out the remaining 129 million euros by the end of February in order to confirm their budget funding.

    Overall, the cuts and reforms in local government have seen outstanding debts drop from 1.07 billion euros in December 2012 to 677.1 million euros a year later.

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