Minister of Regional Development: Several tens of localities in insolvency

Liviu Dragnea, Minister of Regional Development and Deputy Prime Minister, stated Thursday that several tens of localities are either in insolvency or have filed a petition to begin insolvency procedures, and mentioned solutions are being sought, in collaboration with the Ministry of Finance, to allow the state budget to incur the payment of debts. “(…) The mayors of certain villages have submitted a request for, and received European funding – mostly for Agriculture – and for various reasons, they have failed to appropriately carry out the procurement and project implementation procedures, so they are now forced to pay back in full the amount in euros they have received through Agriculture programs. There are several tens of such villages – around 40 or 60,” Dragnea said. He also pointed out that the arrears owed by local authorities at the moment amount to hundreds of millions of RON, and expressed hope that financial resources to remedy the situation would be identified soon. On a slightly different topic, Dragnea mentioned EUR 10.6 billion are necessary to provide all Romanian localities and villages with water and sewerage systems.

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