All municipalities with high structural deficit and responding to three of four criteria will be eligible for apply for a 10 million leva state subsidy, the Bulgarian Government decided on May 15, Investor.bg said.

The state subsidy is on a par with disbursements in the previous two years.

To apply for state subsidies, a municipality must have a five per cent deficit for 2007 and respond to two of a total of three criteria. Namely, it must have less operational funds than its net overdue payments for the same period, have an unemployment rate for 2007 that is 35 per cent higher than the countrywide average and the land of the municipality must be in a mountainous region.

All eligible municipalities must file an application with the Finance Ministry and the request is going to be subjected for a review at a special consultative council.

The funds will be disbursed in two instalments, the second being granted once the municipality files a report on spending the funds from the first tranche.

Last year, beneficiaries under this initiative were 24 municipalities, among which Pernik, Silistra, Devnya, Simitli, Mizia and Bobov Dol.