YUBARI, Hokkaido -- The municipal government here is set to file an application with the central government to be designated as an organization for financial reconstruction, effectively going bankrupt, the mayor said Tuesday...Yubari will become the first local government in 14 years to be designated as an organization for financial rehabilitation under the special law aimed at rehabilitating the finances of local governments...The municipal government has deemed it extremely difficult to rehabilitate its finances on its own, as its outstanding debts have surpassed 50 billion yen, more than 10 times its 4.5 billion yen annual budget. The Yubari Municipal Government's financial situation worsened after all of the 20-odd coal mines in the city had closed down by 1990. The population has declined to some 13,000, about 10 percent of the population when its coal mines had flourished.
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