From: Exit Staff
Bankrupt Municipalities to Face Central Takeover

The Ministry of Finance will assume control of several municipal units which are heading for bankruptcy, according to Minister of Finance Delina Ibrahimaj.

In particular, the municipalities of Vora and Kavaja are said to be in certain financial difficulties. Those suffering from such issues had until 15 July to submit a detailed plan to the ministry on how to improve finances, but there was little response.

A week later, the Ministry announced the selection criteria and the start of the application process for administrators of local self-governed units that are struggling financially or face insolvency.

According to the criteria set by the Ministry of Finance, the applicant for administrator must be educated in economic or legal sciences with a master’s degree, have at least 10 years of experience in public administration, have in-depth knowledge in the field of public finance management in local level and there should also be no conflict of interest with local government units. Interested persons can apply until the end of August.

Earlier this week, Prime Minister Edi Rama warned a meeting of mayors that there would be a tightening of rules meaning zero tolerance for municipalities that fall further into dept. He said those that were unable to get in line would be taken under administration.

Earlier in the year, parliament approved a legal framework whereby the definition of a municipality in financial difficulties was defined. it also provided for the central government to take them over.