The Mayor of Dupnitsa Parvan Dangov requested with a report to the Municipal Council the rescheduling until 2030 of a loan of 3.6 million BGN under the FLAG fund, which supports the implementation of projects of regional importance.
At the end of July, councilors rejected the idea with the argument that it would aggravate the financial situation of the Municipality, the BNR specified.
From the new report it is clear that as of June 30, the arrears of the Municipality of Dupnitsa are BGN 3.3 million. This is 5.7% of expenses on an annual basis at a limit of 5%.
The municipality resorted to a FLAG loan at the end of last year in order to save the project for the construction of a separation plant near the village of German, which could have led to sanctions in the amount of BGN 18 million.
If the mayor's proposal for rescheduling does not pass, the loan must be covered by October 25 of this year
With the proposed rescheduling of the debt, the monthly installment will be BGN 49,995, and annually - BGN 599,336.
The report emphasizes that the proposed 6-year rescheduling option is the optimal one. If the term is extended by 3 years, the budget will be burdened, since the contribution will be BGN 1,200,000 per year.
There are also comments that the Municipality is in a financial crisis. Mayor Parvan Dangov commented to BNR:
"There is no municipality without financial difficulties, but the situation is not as some describe it. He wants to reschedule the loan for six years, not as it was before - for one year. And even more so that this was voted by the Municipal Council."