Cash-strapped Rēzekne will likely need ministry oversight for future spending

A decision will be made on the launch of a financial stabilization process in Rēzekne, Rēzekne City Council deputy Inara Groce said at a meeting of the Latgale sub-committee of the Saeima Human Rights and Public Affairs Committee, the LETA newswire reported August 23.

She said that Rēzekne City Council has convened an extraordinary meeting, as Mayor Aleksandrs Bartasevics (Together for Latvia) confirmed.

The Finance Ministry's representative explained that the financial stabilization process means that the municipality will not be able to take decisions independently without the approval of the Ministry's financial supervisor.

The Law "On Financial Stabilization of Local Governments and Supervision of Financial Activities of Local Governments" establishes the procedure for financial stabilization of local governments in order to ensure the performance of permanent functions of local governments as defined by law in cases where local governments are in extreme financial difficulties.

As previously reported, Rēzekne municipality has run into financial difficulties and found a 3.9 million shortage in its budget. The local council is looking for ways to reduce expenditure.

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