Rēzekne's City Council was dismissed by the Saeima earlier this summer for failure to come up with a balanced budget and ensure the functioning of the municipal functions.
"There are indications that the situation with the budget is worse than it initially looked," the minister said.
Initially, it was suspected that the Rēzekne municipality had artificially inflated its revenue forecast and it now looks as if it will not be able to raise the planned revenues from real estate sales and dividends.
The Minister did not give specific amounts at this stage. "It remains to be seen by how much [euro] the situation is worse. If I were to give figures now, it would be speculation," Bērziņa said.
But the €4 million already forecast, according to the minister, will definitely be needed. "It will be a loan from the State Treasury, which will cover the long-standing debts to builders and some other debts, but there are also daily expenses," the minister said.
The interim administration, which started work on July 1, still needs time to calculate the necessary funding and draw up an action plan.
As reported numerous times by LSM, Rēzekne found itself in serious financial difficulties in the summer of 2023, which led to the loss of office of former Mayor Aleksandrs Bartaševičs (Together for Latvia). The political crisis in the state capital was worsened by the City Council's failure to pass the 2024 municipal budget. The adoption of a balanced budget was one of the conditions for the local government to receive a State loan of EUR 5 million, but the local government did not meet the deadline.
