Filenews 4 March 2025 - by Angelos Nicolaou
Former municipalities and communities that, with the implementation of the local government reform, have been incorporated into the new municipalities as of July 1, 2024 and are now municipal districts, owe to the Water Development Department (WDD) the total amount of €34,351,721 for the purchase of drinking water.
According to the legislation, these debts, calculated until February 11, 2025, are subject to deduction from the state grant. The debts relate to eight newly created municipalities, with many more former municipalities and communities included in them.
As it is understood, the debts left unpaid by former municipalities threaten to deprive the newly established municipalities of state sponsorship, if the conditions included in the circulars of the Ministry of Finance, which provide for cuts from state sponsorship if there are debts, are faithfully followed. It is important to note, however, that municipalities that have entered into an agreement to repay their debts by instalments are not subject to a cut-off from state sponsorship. However, one of these municipalities, Ayia Napa Municipality, does not abide by the terms of this agreement.
The Ministry of Interior, in view of the imminent granting of the first instalment of the annual state grant to municipalities for 2025, requested information from the district administrations, as well as from competent government departments, about any arrears in order to proceed with compensatory acts. The statements submitted by the competent departments and services must also include any outstanding debts of the communities that have been incorporated into the new municipalities and are now municipal districts.
In relation to the debts to the WDD for the purchase of drinking water, debt repayment agreements were signed with the municipalities of Ayia Napa, Aradippou and Geroskipou. Of the three municipalities, only the municipality of Ayia Napa does not comply with the terms of the agreement.
According to the relevant table submitted by the WDD to the Ministry of Interior, out of the total debts of €34.3 million, the municipal district of Ayia Napa of the Municipality of Ayia Napa owes €10.2 million. It is followed in the same municipality by the community council of Avgorou with €2.9 million, the community council of Liopetri with €1.9 million. and the Community Council of Achna with €1.1 million. The debts of the municipality of Aradippou amount to €1.7 million, while those of the municipality of Lefkara amount to €1.1 million. The new municipality of Paralimni – Deryneia owes the Community Council of Frenaros (€2.2 million) and the Community Council of Acheritos (€1 million). The Municipality of Pegeia owes the new Municipality of Akamas €1.6 million. , while the Municipality of Geroskipou €2 million. In the new Municipality of Kourion, the former Municipality of Ypsonas has debts of €2.4 million. and the Community Council of Apostle Andreas and Loukas Kolossi €2.9 million. Total debts amount to €34.3 million. in which the outstanding debt amounts to €28.9m. and interest at €5.4m.
