Hungary's government has so far taken over the debts of 1700 municipalities with fewer than 5000 residents nationwide in a total amount of 80 billion forints (EUR 280m), Prime Minister Viktor Orban said in Nyíregyháza, on Thursday.

There are merely 14 localities whose debt has not been taken over yet, Prime Minister Orbán told a press conference after talks with Nyíregyháza Mayor on debt settlement. He said the government and the local councils would jointly survey how the debt had been piled up.

On national scale, the annual debt service of local councils amounted to 150 billion forints, which corresponded to a third of their revenue, he added. The move has eased the situation of municipalities, enabling them to earmark this amount for development projects, the Prime Minister emphasised.

(Prime Minister's Office)