Municipalities reduce debts by 8 million euros - Obligations to businesses and citizens, headed by Kavaja
Municipalities have shown responsibility in reducing arrears to citizens and businesses.
Official data from the Ministry of Finance shows that by September 2025, the debts carried by municipalities towards companies that perform public works but also towards citizens are recorded at a value of 2.8 billion lek or 28 million euros.
What is noticeable is that there is a trend of reduction in local government arrears of approximately 800 million lek or 8 million euros compared to the end of June 2025, and also a reduction compared to December 2024, where the stock was recorded at 33 million euros.
The obligation imposed by the government to settle the stock, although it has had positive progress in the last two years, still has occasional fluctuations from one quarter to the next. Even though the goal is to completely eliminate the stock of arrears.
Official data from the Ministry of Finance shows that of the total arrears to businesses and citizens, around 10 million euros are unpaid obligations for public investments, 5 million euros for services, around 2.5 million euros for court decisions and 7 million euros for other expenses.
Referring to the list, the value of the debts that municipalities have is not necessarily related to their surface area or population size, except for the Municipality of Tirana.
Specifically, the municipality of Kavaja ranks first, leaving behind the Municipality of Tirana, which was in the lead until June. Kavaja results with a debt value of around 7.2 million euros.
Next in line is the municipality of Pogradec with 2.6 million euros in debt, followed by the municipality of Tirana with 2 million euros, then comes the municipality of Dimal with 1.7 million euros and Rrogozhina with 1.6 million euros, leaving behind Vora, Dibra and Lezha.
While at the bottom of the list of municipalities in terms of the value of debts are the municipalities of Vlora, Shkodër, Korçë and Has.
Municipalities that demonstrate accountability in terms of paying off debts and good financial management benefit more from the performance grant.
Municipalities' outstanding liabilities, September 2025
Kavaja Municipality 7.2 million euros
Municipality of Pogradec 2.6 million euros
Tirana Municipality 2 million euros
Dimal Municipality 1.7 million euros
Rrogozhina Municipality 1.6 million euros
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