TNBiz (TNBiz)
Markets  |  October 10, 2012 13:05:06

MF: Number of municipalities with a higher level of risk management last year rose by more than a third

PRAGUE (MEDIAFAX) - Last year, the number of Czech municipalities with a higher level of risk management to 84 agglomerations, which represents an annual increase of 22 municipalities (+35.5 percent). Repeated occurrence of risk experienced 27 communities, new to them during the period included in group 22, on Wednesday informed the Ministry of Finance (MoF).

"The resulting values ??of indicators point to the potential risk of economic problems, but do not necessarily mean that the village is in a difficult financial situation. This can be evaluated only on the basis of a more thorough analysis of financial and accounting statements and particular to the additional documentation provided by the municipalities themselves," said resort spokesman Ondřej Finance Jakob and added: "It should also be noted that due to the financial reform and in particular accounting depreciation of fixed assets, the data for 2011 is fully comparable with previous years."

Significant risks to the economic situation, according to the ministry of municipalities can be seen in the failure to grant terms of projects supported by EU funds, but also from national programs. These risks arise both from errors in the preparatory and implementation phase, but in the case of "European" also projects the sustainability of the project for a specified period, which requires annual spending considerable operating expenses on their own community. "The very act pre municipalities considerable financial difficulties, which may thus further deepen," said spokesman Jacob.

High risk of insolvency have only village Bublava Sources and Turovice. "Even though the village is trying to avert the risk of insolvency," the ministry said.

The Ministry of Finance also pointed out that the investigation into the finances of municipalities is not primarily intended to assess the degree of agglomeration of debt, but to evaluate their economic situation.

"Every citizen will be able on the website of the Ministry of Finance familiar with how his village to farm and is evaluated as a risk," concluded the Minister of Finance Miroslav Kalousek, with the awareness of citizens considered an important prevention of insolvency community.

Monitoring is, according to the Ministry based on monitoring system eighteen indicators for individual governments and governmental organizations established by them, and as essential indicators are considered an indicator of liquidity and the overall indicator of the proportion of liabilities to total assets. Until last year statistics were included 6,243 municipalities.

Jan Soukup,

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