Municipality of Gortyna declares bankruptcy
The Municipality of Gortyna in the prefecture of Heraklion has declared bankruptcy and is to enter a supervision program that will require increasing the municipal revenue and cutting its costs. In practice this will mean a redoubling of efforts to collect outstanding debts while freezing staff appointments.
The decision to put Gortyna into the special program was taken by Deputy Interior Minister Yiannis Balafas, and it was expected for some time as there have been chronic budget problems at the municipality which is made up by the old south Heraklion councils of Kofinas, Agia Varvara, Gortyna and Rouva.
The residents of the municipality may also be faced with an increase in council taxes. Gortyna is the second municipality to be put in the programme after Salamina, the island municipality off Piraeus.