Lithuanian government says it will not tolerate indebted municipalities

Vilnius City Municipality is among the most heavily indebted in Lithuania
DELFI / Kiril Čachovskij

“We have been working on certain proposals how to administer and manage municipal debts better. Every municipality was analysed in terms of their debts, including the Vilnius City Municipality. Some measures are very radical but they, of course, must be in line with the existing laws,” he said on the radio Žinių Radijas on Thursday morning.

The PM revealed that local governments might be obligated to direct saved funds from social assistance to cover their debts.


Auditors of municipal council will also be under the spotlight because they, according to the prime minister, have been working in an irresponsible manner. It is planned to define their responsibility regarding mounting debts and obligate them to take qualification exams.

Currently, total debt of Lithuanian municipalities is above LTL 2 billion (EUR 579 million) and growing. Vilnius debt alone stands at over LTL 1.2 billion (EUR 348 million).

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