Many Cities of US are on the verge of declaring bankruptcy in the coming months, due to the non payment of there debts. According to the national league of cities Municipal governments is under the debt of $83 billion till 2012. Due to the rise in no of municipal defaults a no of 183 borrowers last year risked municipal issuers because of which they were unable to fulfill the payments worth of $6.4 billion. According to the numbers only one city Menasha was the defaulter last year. But this year many more are expected to join the list. Many experts are blaming the disturbed financial conditions of the US economy for this disturbance.
The three cities which are on the verge of getting bankrupt this year are:
(1)Harrisburg that is Pennsylvania’s capital which owes around $68 million followed by (2)Detroit who Is unable to make up for the 2010 budget accounting for a $280 million balance, and joining the list is the third big Metro city of US (3)Jefferson County, Alabama which is under $5 Billion debt. Although its something new but still a shock for the economy, which according to many economists will cause a delayed drag on Economic Growth of The nation.