2024-04-05 15:52:08
Luxembourg City remains the richest municipality in Luxembourg. In a parliamentary response to LSAP deputy Dan Biancalana, the Minister of Internal Affairs, Léon Gloden, presented the financial situation of municipalities and cities in terms of bank assets and reserve funds. The capital stands out as the municipality that is in the best financial situation with more than one billion euros in banking assets, while financial reserves amount to more than 700 million euros.
The municipalities of Niederanven and Strassen, although a considerable distance from Luxembourg City, are also among those with the most banking assets, with more than 80 million euros and 57 million, respectively, and the largest financial reserves, more than 70 million of euros, in the case of the first, and another 21 million, in the case of the second.
Differdange and Echternach with negative balance
On the other hand, municipalities such as Differdange (-29,517,883.38 euros) or Echternach (-5,599,513.96 euros) have a negative balance in terms of bank assets.
Regarding these situations, the minister explains, in the parliamentary response, that “the negative bank balances are explained by the fact that local authorities use treasury lines, which make it possible to compensate for a temporary lack of liquidity due to a possible gap between revenue and expenses. We also emphasize that municipalities can make the expenses foreseen in the 2023 budget until April 30, 2024”, says Léon Gloden.
Financial reserves and loans: a complex relationship
In the same note, the minister also explains “that although there may be a correlation between the amount of loans taken out by local authorities and their financial reserves, this relationship is complex and depends on many factors”, requiring an “in-depth analysis of the financial situation specific to each municipality”.
The most indebted communes in the Grand Duchy
Each year, municipalities receive a budget circular from the Minister of Internal Affairs with recommendations and projections of essential data. “In addition, individual financial consultations are carried out, as well as numerous training sessions on the subject”, concludes Léon Gloden.
2024-04-05 15:52:08