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FEBRUARY 14, the AUC received the refusal of the Ministry of Finance to write off the local government debts on mid-term loans accumulated over the previous years. The Association came up with a suggestion to write of the debt because local budgets used these loans as a mechanism to compensate the ‘under-received’ revenues the Ministry of Finance envisioned in the course of preparing the State Budget. The repayment off the 2009-2010 debts represents a considerable burden on local budgets in the context of the budget shortfall for the delegated authority in the current year.

The Association decided to address this issue to the Cabinet of Ministers one more time. The expert opinion on local budget expenditures for repayment of the 2009-2010 mid-term loans will be attached to the address. The AUC Analytical Center experts will process the available information received from 25 oblast center cities. The meeting of the AUC Board scheduled for February 21 is expected to approve the address.