Graz faces insolvency: Communists impose spending freeze:
The city in Styria has the highest per capita debt of all Austrian cities. The ruling communists are ...
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Graz imposes spending freeze; KPÖ cites liquidity squeezeEber’s office cites €32 million in unforeseen extra costs; contracts and orders are therefore temporarily restricted.
- Finance councillor Manfred Eber imposed the freeze on Wednesday, shortly after Graz’s new government was sworn in.
- New subsidy agreements are temporarily suspended; the city will also place no orders for at least one week.
- Eber’s office rejects bankruptcy claims and primarily cites €32 million in extra costs caused by Styria’s disability law.
- Graz’s debt stands at €2 billion; per capita, its burden is the highest among Austria’s provincial capitals.
This is a short-term liquidity crunch, as Eber's office told ORF.— Statement from the office of Graz's Finance City Councillor Manfred Eber, relayed to ORF
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legal process through which people or other entities who cannot repay debts to creditors may seek relief from some or all of their debts
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