The Government will discuss its plans to take over a part of local government’s debt at its session on 7 November, Government Spokesman András Giró-Szász said on public television M1 on Monday.

Prime Minister Viktor Orbán announced on Saturday that the state will take over debt worth 612 billion forints (EUR 2.17bn) from 1956 municipalities.

The Government Spokesman noted that the annual debt service of that total was much lower, and the scheme would have no impact on Hungary's deficit or state debt, as it has been calculated with the municipal debt portfolio taken into consideration. He added that the state would have a better negotiating position with lenders, than local governments would.

According to the Government's plans the state will take over the entire debt of local councils in towns with a population of 5000 or less, and a part of the debt accumulated by larger municipalities. For further information please see: Government to take over 612 billion forints worth debt from 1956 municipalities.

(Prime Minister’s Office)