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The city authorities of Detroit submitted the application on bankruptcy, Associated Press reports. It is the largest case of bankruptcy of municipality in the USA. The debt of the city can reach 18,5 billion dollars. The deficit of the city budget makes 380 million dollars.
The formal application on the procedure beginning on recognition of financial insolvency was submitted to special federal court of the USA on bankruptcy. The crisis managing director of the city Kevin Orr became the initiator of a similar step. He tried to agree with creditors of Detroit among whom pension and trade-union funds, about radical restructuring and debt abbreviation, however he failed.
The application on bankruptcy contains the reference to article about protection of the rights of the bankrupt. Last it was approved by the republican governor of the State of Michigan Ric Snyder. "It is obvious that financial difficulties of Detroit can't be resolved without the similar application. It is the unique alternative", - the politician considers.
In case of approval by court of the application of the city about bankruptcy, the property of Detroit will be sold by auction for cancellation of debts.
In Administration of the President of the USA of Barack Obama declared that attentively trace a situation in Detroit.
Detroit is considered center of the American automobile industry. In the city and its neighborhoods headquarters "big three" - GM, Ford and Chrysler concerns is located. Since 1950 the population of the city was reduced from 1,7 million to 700 thousand. Serious decline of Detroit began in the 1970-1980th years in connection with crisis of the American automotive industry.
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