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Penza region municipalities’ debts to be rescheduled

17:41 | 02.10.2015 | Economy

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Penza, 2 October 2015. PenzaNews. The Penza region government has approved a new plan for rescheduling of municipal debt to the Penza region on loans for partial cover of budget deficit before January 1, 2015, along with partial discount on debt, in a decree signed by the acting governor Valery Savin.

Penza region municipalities’ debts to be rescheduled

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According to the document made available to PenzaNews agency, the Penza region Ministry of Finance will choose the debt to be rescheduled, and the local municipalities must submit their claims there.

Such a claim must include a statement of need for debt rescheduling, debt information on January 1, 2015, and its structure, along with a copy of relevant information from the municipal debt register on October 1, 2015. Moreover, it must contain proof the organization holds no debt for salaries and charges on payroll to budget employees, as well as reports on volume and structure of municipal debts for January 1 of 2016, 2017, 2018, 2019, 2020 and 2021.

Following the new procedure, each claim will take 10 business days to process, starting from the day of application, with the Penza region Minister of Finance choosing whether or not to reschedule the debt.

A claim may be denied if a local municipality does not fit the set criteria or has debts to budget employees for salaries and charges on payroll.

If the claim is approved, the ministry and the local municipality sign an addendum to the previous agreements (on providing credits from the budget of the Penza region) on partial coverage of budget deficit with the sum of partial debt discount, and the remaining restructured debt with a payment plan into 2020.

An addendum is formed within 5 days after the claim approval.

The debt discount will not exceed 90% of the main debt on October 1, 2015.

The Penza region government decree also includes the stages of further activities to deal with the debt, as well as a warning that violation of the restructuring plan after the addendum is signed will be grounds for forceful retribution of the debt in a single, one-part immediate transaction.

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