Municipal Debt of 522 Euros per Inhabitant - Thuringia’s local debt drops but short-term borrowing surges in 2022
Thuringia's local governments have seen changes in their debt levels, according to recent data. The five independent cities in the region had a combined debt of €141.3 million, averaging €269 per capita. Meanwhile, rural districts carried a total debt of €314.6 million, averaging €199 per capita. The average local debt per capita in Thuringia stood at €522.
Thuringia's state government reported a core budget debt of €15.2 billion in 2022, which reduced to €7,205 per resident. Local government debt in the region decreased by €57.4 million (5.0%) in the same year. Most local debt was from loans with banks and savings institutions. However, short-term borrowing for immediate needs increased significantly, from €2.1 million to €5.2 million in one year. Short-term bridging loans (Kassenkredite) totaled €34.4 million, with increased usage in 2022.
The data also revealed that municipalities within districts had a total debt of €644.3 million, averaging €407 per capita. It's worth noting that specific information about the largest debt volumes in 2020 and individual debt amounts of the cities was not available.
Thuringia's local governments have shown a decrease in overall debt, but short-term borrowing has increased. The average local debt per capita in the region remains at €522. Further analysis is needed to understand the debt situation of individual cities and the reasons behind the increase in short-term borrowing.
