The Government wishes to reach an agreement with municipal councils regarding debt takeover by spring 2013, Deputy Prime Minister Zsolt Semjén stated on Wednesday at a press conference with Mayor of Eger László Habis.

He emphasised that this measure, affecting 1956 municipalities, became necessary after municipal debts increased 500% and councils became nearly inoperable during the 8 years of socialist leadership. As for the 1200 local governments who do not need assistance, the Government will take into account good governance when allocating funds next year, he added.

The Deputy Prime Minister recalled that in 2010 the country, its citizens and municipalities were all caught in a debt trap, but that since then, with the help of the people, the Government has reduced public debt from 82% to 77% and has helped people in debt through early loan repayment options and exchange rate caps.

(Prime Minister's Office)