Filenews 27 May 2025 - by
By the end of the week, the Ministry of Interior is proceeding with the payment of the second instalment of the annual state sponsorship to the municipalities for 2025.
The payments concern the first 12 municipalities after the answers were given by the services for all pending cases. The sponsorship will be offset against the overdue debts of the municipalities to the various government departments and provincial administrations, as well as to the EAC, the Water Development Department, the Public Works Department, the Urban Planning and Housing Department, as well as the Land Registry and Surveying Department.
The municipalities have been informed about their debts by the Ministry of the Interior .Where they have been sent, they are evaluated with the aim of receiving the share of the total €117 million which is the amount set for state sponsorship in 2025.
In the Water Development Department alone, the debts of eight municipalities for the purchase of water amount to €34.1 million. These are former municipalities and communities that, with the implementation of the Local Government reform, have been incorporated into the new municipalities since July 1, 2024 and are now municipal districts.
According to the legislation, these debts, which have been calculated until May 15, 2025, are subject to a decoupling from the state sponsorship. The debts concern eight newly established municipalities, with many more former municipalities and communities included in them.
It is noted that the submitted statements also include any outstanding debts of the former 63 communities that have been incorporated into the new municipalities and are now municipal districts. On the part of the Union of Municipalities, it is noted that the new municipalities were called upon to absorb the administrative and operational needs of these communities, but without the corresponding transfer of the state sponsorships they previously received, creating a new financial burden.
As it is understood, the debts that have been left unpaid by former municipalities and communities threaten to deprive the newly established municipalities of state sponsorship, if the terms included in the circulars of the Ministry of Finance are faithfully followed, which provide for cuts from state sponsorship if there are debts. It is important, however, to note that those municipalities that have entered into an agreement to repay their debts in instalments are not subject to a decoupling from the state sponsorship.
In relation to the debts to the TAY for the purchase of drinking water, debt repayment agreements were signed with the municipalities of Ayia Napa, Aradippou and Geroskipou.
Based on the relevant table submitted by the TAY to the Ministry of Interior, out of the total debts of €34.1 million, the municipal district of Ayia Napa of the Municipality of Ayia Napa owes €10.1 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 the debts of the Municipality of Lefkara amount to €1.2 million. In the new Municipality of Paralimni – Deryneia, the community council of Frenarous has debts of €2.3 million. and the community council of Acheritou amounting to €1 million.
The Municipality of Peyia owes €1.3 million to the new Municipality of Akamas, while the Municipality of Geroskipou owes €2 million. In the new Municipality of Kouri, the former Municipality of Ypsonas has debts of €2.5 million and the community council of Apostolos Andreas and Loukas Kolossiou €2.9 million. Total debts amount to €34.1 million. in which the overdue debt amounts to €28.5 million. and interest at €5.6 million.
According to the Ministry of the Interior, the state sponsorship is determined by the legislation passed and provides for the concession of €117 million to the municipalities for 2025, an amount agreed with the Union of Cyprus Municipalities itself, in the context of the debate in the Parliament. It is noted that this amount has been increased by €47 million in relation to the sponsorship they received under the previous regime.
The Ministry of the Interior receives several requests for additional funding from municipalities, or even for the offsetting operations to proceed with instalments. Asked by "F", the president of the Union of Municipalities, Andreas Vyras, said that since there are overdue debts, they must be paid where the municipalities ask for facilities to be provided. He explained, however, that a constant request of the Union of Municipalities is the increase in state sponsorship so that it responds to the increase in inflation and ensures the maintenance of the purchasing power of the available resources.
According to Mr. Vyras, the financial situation of the municipalities is dramatic and the state is required to examine the request for an increase in state sponsorship. He pointed out that the amount of the state sponsorship at €117 million. It was determined since 2022 and now today the data have changed. He also explained that the reform has significantly increased operating expenses.
TABLE
GOVERNMENT WATER SUPPLY SYSTEM TOTAL
- LARNACA – FAMAGUSTA
MUNICIPALITY OF LARNACA - VOROKINI COMMUNITY COUNCIL €483.805,73
MUNICIPALITY OF ARADIPPOU
MUNICIPALITY OF ARADIPPOU €1.687.282,35
COMMUNITY COUNCIL €9,712.32
TRULLA COMMUNITY COUNCIL €147.539.93
MUNICIPALITY OF LEFKARA
MUNICIPALITY OF LEFKARA €1.208.462,10
KATO LEFKARA COMMUNITY COUNCIL €137.869,41
MUNICIPALITY OF AGIA NAPA
MUNICIPALITY OF AGIA NAPA €10.142.502,15
MUNICIPALITY OF SOTIRA €713.385,68
AVGOROU COMMUNITY COUNCIL €2,953,932.29
ACHNA COMMUNITY COUNCIL €1,170,835.70
COMMUNITY COUNCIL OF LIOPETRI €1.957.340,52
GOVERNMENT WATER PROJECT OF LIOPETRI €88.355,51
MUNICIPALITY OF PARALIMNIO - DERYNIA
ACHERITOS COMMUNITY COUNCIL €1.092.079,03
COMMUNITY COUNCIL OF FRENAROS €2.311.662,25
- PAPHOS
MUNICIPALITY OF AKAMAS
MUNICIPALITY OF PEGEIA €1.350.672,61
COMMUNITY COUNCIL OF PANO ARODES €2.080,19
MUNICIPALITY OF GEROSKIPOU
MUNICIPALITY OF GEROSKIPOU €2.007.403,51
- LIMASSOL
MUNICIPALITY OF KOURIO
MUNICIPALITY OF YPSONA €2.480.349,98
COMMUNITY COUNCIL OF EPISKOPI €146.022,87
COMMUNITY COUNCIL OF ERIMI €1.012.390,66
CANTU COMMUNITY COUNCIL €35.191,35
KOINOT. COMP. RE. ANDREA & LOUKA KOLOSSIOU €2.962.829,01
TOTAL €34.101.705,15
