Last year, the central government took over a total of HUF 880 billion (EUR 2.96 billion) debt amassed by local governments, and is planning to take over a further 430 billion, Minister of Public Administration and Justice Tibor Navracsics said in Zalaegerszeg (Western Hungary) on Friday.

Minister Navracsics said that the first phase of the government programme helped municipalities with a population under 5,000, taking over their complete debt portfolio, as well as larger municipalities with a certain amount of their debt.

The second phase will relieve the larger towns and cities from the remaining parts of their debt portfolio, the minister said.

For Zalaegerszeg, the government will repay a development loan of HUF 965 million. The minister noted that it was a relatively small amount and praised the city for its "responsible management" of its resources.

(Ministry of Public Administration and Justice)