Cyprus’ newly formed municipalities are facing financial turmoil, with €34.3 million in unpaid water bills threatening to slash their state grants.
Under local government reforms, former municipalities and communities merged into new municipal districts on 1 July 2024. However, they still owe the Water Development Department (WDD) millions for drinking water purchases. According to government guidelines, any municipality with outstanding debts risks having the amount deducted from its state funding.
