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Greek Municipality Suspends Operation Due to Economic Problems

 A first in Greece: Acharnon Municipality, a suburb of Attica prefecture, suspended its operation due to economic problems. The decision was taken on Thursday evening at the meeting of the city council. Acharnon Municipality said, it was unable to pay employees and to cover fixed costs.

A notice uploaded on the municiaplity’s website reads:

“The municipality of Acharnon  will  indefinitely remain closed until the economic problems are solved.”

The municipality will work with security staff and the garbage collection will be done only in kindergartens and schools.

Acharnes is a suburb located 10 km north of Athens and the most populous municipality in Eastern Attica. In ancient times Acharnae was the largest municipality of Attica.

Debts & Loans

Speaking to Skai TV this morning, protesting employees said that Acharnon municipality has revenues of 1.7-1.8 million per month through the collection of municipality fees. That the monthly payroll  for the employees was more or less exactly this amount. “However, only 800,000 euro from the revenues reach the cash registers due to loans repayments,” said one employee.

 According to To VIMA, Acharnon Municipality was 5. on the list of Greek municipalities with debts to exceed at 150% their revenues. It was excluded from the program for “debts arrangements for the Greek municipalities” in summer 2011.

Between 2004-2009, Acharnon municipality (and the Municipality of Zographoy) had received loans from foreign banks, some without transparent procedures. Municipality of Acharnon had received 31 million euro, Zographoy 25 million euro.

  Ten days ago, Central Union of Municipalities (KEDE) had warned that more than 100 municipalities were about to suspend payments. 

“14 municipalities did not submit the amounts to the Central Payments Authority necessary for the payments of the first two weeks of September, with the effect that municipality workers did not get paid. If this situation continues, more than 100 municipalities will announce suspension of payments next month.” (KTG)

It looks as if Acharnon Municipality is the first that goes under… 




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