The total amount owed by municipalities to creditors has been reported at $6.95 billion.

This is an increase from $5.66 billion reported for the same period in the 2023/24 financial year.

Provinces with the highest percentage of outstanding municipal creditors in the category greater than 90 days include Mpumalanga at 93.9%, Free State at 92%, Northern Cape at 91.8%, and Limpopo at 86.1%.

An increase in outstanding payments to creditors could be an indication that municipalities are experiencing liquidity and cash challenges and consequently are delaying the settlement of outstanding debt.

--SABC--