Khaberni - The General Manager of the Cities and Villages Development Bank, Wassim Al-Haddad, said that reducing the municipalities' debt will contribute to supporting them in performing their service obligations, noting that the total debt decreased from 630 million dinars in 2024 to 285 million dinars in 2025, after exemptions and repayment of financial obligations amounting to 345 million dinars.
Al-Haddad explained through Al-Mamlaka channel, on Tuesday evening, that the debt reduction was part of a comprehensive reform vision aimed at improving the financial and administrative conditions of the municipalities, raising the level of municipal services, and enhancing environmental performance, with a focus on principles of sustainability, efficiency, and expenditure rationalization.
He added, "We stipulated that municipalities must present a financial and administrative reform plan to accept the rescheduling of their debt."
He pointed out that the remaining debt was scheduled over repayment periods ranging from 5 to 15 years, taking into account the financial conditions of each municipality, noting that the exemptions included interests on the debt, overdrafts, contractors' arrears, in addition to obligations in favor of Social Security, the national electricity company, and other entities.
He noted that the municipalities' revenues grew during the year 2025, with an increase from 76 million dinars in 2024 to 109.9 million dinars, an increase of 33.9 million dinars or 45%, which positively reflected on the municipalities' ability to meet their financial obligations and improve their services.
Al-Haddad added that the measures taken ensured an annual cash flow for the Cities and Villages Development Bank, alongside the launch of a disciplined credit policy that considers the reality of the municipalities and project priorities, where cash flows reached 35 million dinars in the first year, with a cumulative value reaching 175 million dinars over five years.
