MPs of governing Fidesz-KDNP alliance submitted amendments to Parliament on Monday that would extend the period local governments have to prepare crisis budgets from 60 to 90 days.
In the case of big local governments, 60 days is too short a period to prepare a crisis budget, said Lajos Kósa (Fidesz) and László Habis (KDNP). They also said that local councils that get big reorganisation loans should get state interest subsidies. The text of the bill noted that about half of the stock of local council debt in Hungary is denominated in foreign currency.
The law on debt restructuring among local councils was approved by Parliament in 1996, after several smaller local governments because insolvent. Since then, liquidation procedures have been launched against about 40 local councils, mostly with small budgets.
Producing journalism that is worthy of the name is a costly business. For over 30 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.
