Many local govts eyeing central bail-out

Budapest, September 16 (MTI) - Over half of the 31 billion forints (EUR 108m) the government has set aside to help indebted municipalities is still to be distributed and the number of applicants is expected to rise once again, business daily Vilaggazdasag said on Friday.

From the fund, created early in 2011 and managed by the interior ministry, 11 billion forints had been allocated in a first round to troubled local councils to help them repay debts they accumulated in operational costs or cover unpaid utility bills, said the paper.

In that round, with an application deadline of April 28 a total of 1,200 of the country s 3,200 municipalities and ten counties received subsidies from the fund, with several of them complaining about the amounts awarded being too small.

Ujszalonta, a village in southeastern Hungary, for example, received as little as 41,000 forints (EUR 142), so it will apply again, said the paper, adding however that bigger cities, such as Hodmezovasarhely (SE) or Dunaujvaros (c) will do the same.

Among the counties to stand in the line again will be Pest County that has already received 773 million forints but has again come to the brink of financial collapse.

The interior ministry told the paper that the fund s entire amount will be allocated, transfers however may shift to early next year.