Magdeburg (dpa/sa) - Due to the rise in energy prices, the state has simplified a financial aid procedure for the municipalities. This was announced by Finance Minister Michael Richter (CDU) on Tuesday. According to this, municipalities, associated municipalities and districts can now apply for interest-free loans from the so-called compensation stock “under easier conditions”.
As soon as a liquidity gap becomes apparent, which can be attributed to the development of energy prices, an application can be made. The period ends on October 31, 2021. The liquidity support must be repaid later. "Municipalities will clearly feel the increased energy prices in their households," explained Richter. The country wants to alleviate these burdens.
The funds from the equalization fund are primarily used to support municipalities with exceptional burdens and financial emergencies. A total of 40 million euros is available for this every year.
