RIGA, May 22 (LETA) - Rezekne City Council will apply for the termination of the municipality's financial stabilization process, the city council decided on Friday.

Rezekne Mayor Janis Tutins (Together for Latvia/Latvia First), explained that the municipality had fulfilled the requirements of the stabilization commission and the Ministry of Finance. He stated that the municipality has a balanced budget, there are no arrears for services received, no interest and loan arrears.

The municipality has also fulfilled other conditions, such as centralized accounting.

The decision to terminate the stabilization process should be examined by the standing commission for the stabilization of local government finances and approved by the Cabinet of Ministers.

As reported, Rezekne municipality entered the financial stabilization process because the municipality's budget did not include funding to meet its obligations, including the payment of employees' salaries.

The Finance Ministry explained that the municipality was in serious financial difficulties and could not balance its budget without an additional state budget loan. The stabilization process and monitoring arrangements are being carried out in line with the requirements laid down in the regulatory enactments, ensuring the performance of autonomous functions, including the availability of services to Rezekne residents and timely settlements with contractors.