Two Greek Towns Go Bankrupt

The town of Gortyna on Crete, in the prefecture of Iraklio, has become the second, after Salamina, an island off Piraeus, to declare bankruptcy because it’s broke.

State officials said the town, as did Salaminia would be put into a “reform program” in a bid to chase outstanding debts it’s owed and that hiring has  been frozen.

The decision to put Gortyna into the special program was taken by Deputy Interior Minister Yiannis Balafas, Kathimerini said.

Besides not hiring any workers, both municipalities will raise property taxes for higher assessed properties to make them help bail them out.