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Estonian Finance Ministry launches debt adjustment to six municipalities
BC, Tallinn, 24.11.2014.
Print version
Print versionThere are six local municipalities in Estonia who have exceeded the net debt burden ceiling two years in a row and the Estonian Finance Ministry launched adjustment proceedings regarding them, LETA/Public Broadcasting reports.
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The proceedings concern the towns of Keila, Loksa, Paide and Vändra and parishes of Viimsi and Mõniste.
Finance Ministry Local Governments Financial Management Department Head Sulev Liivik explained that the so-called adjustment proceedings last for four years. During this period the local municipality cannot increase its debt burden. "It must not worsen its financial situation," said Liivik.
"They cannot take loans and the situation also applies to them that they cannot, for example, get foreign aid, which requires co-payment," said Liivik.
Liivik said that before the Financial Management Act came in force, the debt ceiling adherence was not implemented too often, and therefore towns were able to take on more responsibilities.
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