Chisinau tenants owe over 6 million lei to city coffers

Chisinau City continues to have lots of debtors who fall behind in rent payments. As of July 1, the total debts owed by commercial entities renting land from the City Hall made up about 6.3 million lei. Most of them, 60%, are owed by the entities based in Buiucani district; 20.6% - Rascani district; 13.6% - Botanica; 5% - Centru; and 0.8 % - Ciocana. Aurelia Porumbescu, head of the city Finance Department, says that the biggest debtors to the municipal budget are the Real Humanist University, owing 1.5 million; Alis Iric Ltd – 1.2 million; National Theoretic Lyceum – 875 thousand; and the High School of Modern Technologies – 610 thousand lei. There have been initiated debt recovery procedures in a number of cases, referring to a volume of arrears totalling 5.5 million lei. Porumbescu says that the accumulation of debts is favoured by a clause which makes impossible for the City Council to terminate rent agreements with the debtors. At present, the Department holds 805 rent contracts for a surface of 355 thousand sq m and 12.6 million lei in annual rent payments. Most of the tenants, who are actually renting the largest surfaces of municipal property, are located in Botanica district. The Register of municipal property comprised as of January 1, 2006 a total surface of 1.7 million sq m. The municipal Department for Education and Youth and educational establishments in Chisinau occupy the majority of municipal spaces – about 1.03 sq m.

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