Fredensborg Municipality: officially the poorest in Denmark

Unexpected expenses could lead it into bankruptcy

Lucie Rychla

Fredensborg Municipality in the Capital Region is experiencing serious financial problems, TV2 News reports.

According to figures from the Interior and Finance Ministry, the local government has only 553 kroner for each resident in the budget.

The amount is far below the set limit of 1,000 kroner per person, and the losses continues to rise.

Unexpected expenses
“Some of the negative development has been caused by extra expenses beyond our control,” Thomas Lykke Pedersen, the mayor of Fredensborg Municipality, told TV2.

“We have been helping to finance hospital admissions, particularly at the psychiatric department and the department for handicapped people.”

Going bankrupt
After the municipality recently invested in a new school and a sports centre, the councillors budgeted for lower expenses in 2015 to increase the cash balance.

However, the unexpected hospital expenses have resulted in a higher loss and if the situation continues, Fredensborg Municipality will hit rock bottom by the end of the year.

Other municipalities in Denmark such as Næstved, Æro and Frederikshavn are experiencing similar financial issues.

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