Following the Government’s decision, 2007 settlements have become completely free of debt by now. The others will be completely consolidated by the end of February 2014 - said Minister of State for Municipal Affairs András Tállai at a press conference in Mezőkövesd.

Mr Tállai called the decision of the Government to assume all the debts of local governments important and stated that as a result of the three-step process, local governments will be freed from their debts by the beginning of 2014.

Mr Tállai emphasised that in 2010 the system of local governments were close to bankruptcy, with their debt reaching HUF 1247 billion; hence the transformation of the system was inevitable.

In 2011 the Government spent HUF 189 billion on the consolidation. In 2012 the debt of settlements with less than 5000 inhabitants was completely assumed, while settlements with more than 5000 inhabitants were consolidated from 40 to 70 per cent.

According to the Minister of State the Government will assume the debt of 31 December 2013. Local governments have to provide information by 15 January 2014 to the Ministry of National Economy.

(Ministry of Interior)