Interior Minister Yiannis Ragoussis on Thursday unveiled a programme to tackle debts and deficit problems plaguing 58 of Greece's 325 municipal authorities that are considered to be 'in the red'. Of these, 34 have a total debt that equals up to 100 percent of their regular revenues. The municipalities facing financial problems will be included in a debt programme after their financial state is first assessed by chartered accountants and their inclusion in the programme is approved by an independent committee set up at the interior ministry.
The programme for refinancing over-indebted municipalities will call for a freeze on hiring and the cessation of funding for certain categories of events or public relations spending, while requiring them to implement the programme within a specific schedule.
It will also include an extension of loan repayments, lower interest rates and a 'grace period' for certain cases.