District of Mayen-Koblenz: Court secures millions from debt funds!

Kreis Mayen-Koblenz erhält über 5 Millionen Euro aus dem Kommunalen Entschuldungsfonds – ein wichtiger Schritt zur Schuldenregulierung.
District of Mayen-Koblenz receives over 5 million euros from the municipal debt relief fund-an important step towards debt regulation. (Symbolbild/ANAG)

District of Mayen-Koblenz: Court secures millions from debt funds!

The district of Mayen-Koblenz was able to achieve an important legal victory before the Koblenz administrative court, which decisively influenced his financial future. According to SWR , the district is entitled to payments from the country's local debt fund. This is accompanied by the decision that the circle receives more than five million euros retrospectively, including interest.

The district has been participating in the Emphasis program of the State of Rhineland-Palatinate since 2012 to fight against the high debts. Every year, around 2.5 million euros flow from the debt relief fund to the district's coffers. The program is designed for a term until the end of 2026.

financial challenges and legal disputes

Despite the state support, the district is faced with a complex financial situation. According to the administration, the payments may only flow as long as the loan inventory does not fall below a certain amount. The payments are discontinued as soon as the loan stock is reduced to a third of the original value, unless an increase is expected.

Currently the district was withheld from the district, since the country believed that the requirements for the payments were no longer met. However, the district argued that its debts had only fell temporarily and that it continued to rely on support, for example to do justice to rising costs in school traffic. The administrative court found this argument conclusively and agreed to the circle.

positive perspectives for the future

The court's decision also means that the refused financial aid for the years 2022 and 2023 must be paid. These additional payments, including interest rates, could open up a financial scope of up to 7.76 million euros in further debt relief aids, such as kvmyk . The need for a new advertisement of student transport services was one of the main reasons for the increase in the district's liquidity loans, which rose to over 27.4 million euros in 2022 after being reduced to around 15.7 million euros.

The judgment gives the district the opportunity to continue to participate in the submission program, which means not only a short -term solution, but also a long -term strategy to improve the financial situation. However, the possibility of an appeal by the country remains that the decision could therefore be checked against the background of larger political and legal disputes.

In view of the current situation, it is crucial that the municipality's financial means is covered by both current and in the future. For this purpose, it is necessary to strategically control the decisions about the inclusion and repayment of liabilities, taking into account financing risks and the current market situation. According to KGST , a structured procedure is recommended in seven steps for effective debt management, which could be tailored to the specific challenges of the district.

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