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What are the units with the most arrears and how will they be repaid?

2024-01-26 11:55:54Biznes SHKRUAR NGA REDAKSIA VOX

What are the units with the most arrears and how will they be repaid?

The arrears of the municipalities in the country and their non-repayment over the years has become a problem for the provision of services to citizens but also to the executive. In order to resolve this situation, the Ministry of Finance has decided to intervene again, where through an instruction published in the Official Gazette, the management of the financial difficulties of the local self-government units is aimed. Specifically, the said instruction groups municipalities according to four categories, based on their financial situation.

Specifically, municipalities are considered to have financial problems when the ascertained and unpaid financial obligations constitute 15 percent of actual annual expenses, in a given month; or, exceed 20 percent of actual annual expenses in the following month; In financial difficulties when delays in the liquidation of financial obligations to third parties are found even in the following month of the month, when it exceeds the level of 20 percent, and the value of the stock increases progressively above the level of 25 percent of actual annual expenses; In serious financial difficulties when long-term debts and unpaid obligations to third parties constitute more than 80 percent of actual annual expenses.

Insolvent when it fails to implement the financial rehabilitation plan and/or if the ratio of long-term debts and unpaid obligations is over 130 percent of actual annual expenses.

According to the instruction, for each category municipalities must take a plan of measures with the aim of financial recovery, which is related to better performance in tax collection, reduction of expenses and determination of a repayment calendar of the obligations they have, starting from the most old ones to the newest ones, also using the funds inherited from the previous year.

In the case of municipalities that result in insolvency, the government has the right to appoint an administrator who will work with the mayor to draw up a plan and get out of the state of insolvency. The term of financial recovery and return of the local self-government unit to the normal state is 2 years.

But which are the municipalities that currently have the most unpaid obligations? According to the latest data published by the Ministry of Finance, until September 2023, the municipalities have a stock of arrears at the level of 7.8 billion ALL. The municipalities with the most liabilities are the Municipality of Tirana, Mirditë, Vorë, Pogradec, Lezhë and Kamëz. While the municipalities that do not have obligations are Pustec, Shkodër, Shijak, Kolonje, etc.


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