The Government is assuming all local government debts, a total of HUF 1247 billion – Minister of Interior Sándor Pintér said in Miskolc on Monday.

Minister Pintér reminded the press that following the amendment of the new Act on Local Governments, the Government has decided to take over the debt of local governments. He also added that settlements with less than 5000 inhabitants had already been consolidated last year, with the Government assuming total debts of HUF 70 billion, and the debts of the larger cities have been assumed to various degrees, 50 percent on average.

Minister Pintér added that in 2010 the debts of local governments totalled HUF 1247 billion, with an additional HUF 300 billion of unpaid bills.

Describing the details, he said that those towns and cities with more than 5000 inhabitants were first consolidated to a total of HUF 618 billion, and now the remaining debts will also be assumed.

The leader of the Ministry of Interior said in relation to Miskolc, that 70 percent of the HUF 36 billion debt, HUF 25 billion 661 million, was consolidated in the first round, so the city was able to breathe a sigh of relief.

The Minister of Interior added that the local government of Miskolc now has debts of HUF 10.7 billion, which will now also be assumed by the Government.

Minister Pintér also said that it was a significant help for Miskolc that one of the new 112 emergency number centres will be located in the city, creating more than 400 new jobs and 1000 places within the public employment programme.

The Mayor of Miskolc, Ákos Kriza said that without the help of the Government the management of the city would have become impossible by the end of 2010. Due to the consolidation they have re-organized the management of the city and many new work opportunities have been created.

(Ministry of Interior)