The town of Rokytnice nad Jizerou, a ski resort in North-Eastern Bohemia, has entered history as the first municipality to go bankrupt. The municipality ranks among the most heavily indebted in the country and is the first town whose debts are being resolved through a public auction of its property. Its debts, plus interest, amount to some 400 million CZK which is ten times its annual budget. The debts accumulated in the 1990s due to failed business projects.
After the auction of 71 buildings and plots of land, Rokytnice's property will be reduced to a town hall, school, nursery school, fire station and a cemetery. However, Rokytnice mayor Stanislav Sedy estimates that the auctions will settle just one-tenth of the town's debts.