RIGA, May 19 (LETA) - Valka Municipality has until June to amend its budget to improve the municipality's financial situation, the government decided on Tuesday after hearing a report by the Finance Ministry on the financial situation in Valka Municipality and solutions for future action.

The Finance Ministry had proposed to postpone amending Valka Municipality's budget until August, but the municipality's chairman Vents Armands Krauklis (Vidzeme Party) argued that this was not necessary as all the documents had already been prepared and could be submitted by June.

At an earlier Cabinet meeting, it was agreed that the Treasury would refinance a total of six loans of Valka Municipality amounting to EUR 646,605, with the principal payments being deferred to future years.