Six localities in Romania – insolvent

Six localities in Romania are insolvent and the Ministry of Finance has not allocated any money to help them out of this situation, PNL Deputy Romeo Nicoara says in a request sent to the Finance Minister, Eugen Teodorovici.

All these localities have very huge debts and have officially joined the insolvency proceedings through court rulings, realitatea.net reports.

According to an emergency ordinance approved by the Government, the administrative units that have debts due for more than 120 days, representing more than 50% of the general budget or have not paid wages for more than 120 days from the date due, are insolvent.

The localities of Aninoasa (Hunedoara County), Nalbant (Tulcea), Ardeoani (Bacau), Calinesti Oas (Satu Mare), Naruja (Vrancea), Andreiaşu de Jos (Vrancea) are administered by the creditors.

“The mayoralties have no money to pay their debts from the local budget, it is necessary for them to receive money from the Government. Former Prime Minister Mihai Tudose said that the mayoralties should find a solution to these problems, while the mayors accuse the Government of not giving them money to get out of insolvency,” the liberal politician said, quoted by bursa.ro.

The PNL deputy points to the Ardeoani commune in Bacău County, which went insolvent on January 10, 2014: “The share of payment obligations in the total expenditures of the commune’s general centralized budget is 268%, the mayoralty having payment obligations of RON 5,314,084.”

The town of Aninoasa, Hunedoara County, was the first locality in Romania to open the insolvency procedure, in June 2013. On December 31, 2013, the overall expenditures of the town’s budget were of RON 4,297,650, Nicoara says.

The PNL Deputy asks Finance Minister, Eugen Teodorovici, if the Finance Ministry has envisaged adopting measures to support the mayoralties and what steps are to be made, so that the citizens in these localities are not affected.

Another problem is related to the new unitary wage law, in force since July 1, 2017. By the law, there are higher indemnities for the mayors, deputy mayors and the heads of the county councils and the county councils are to decide on the wages of the civil servants in administration. Many mayors have revealed that the wage increases were much larger that the mayoralties’ capabilities. Some mayors have decided to cut investments, others request money from the Government.