# Financial and regulatory challenges in Struga Municipality > Live situation record from CLSTR: https://clstr.news/situations/financial-and-regulatory-challenges-in-struga-municipality > Updated: 2026-08-23T08:35:06.000Z. Sources: 7. Developments: 2. The Municipality of Struga is experiencing significant financial instability driven by accumulated debt and lost revenue. Initially, the municipality faced enforcement proceedings regarding a 5 million euro debt. Mayor Mendi Qyra attributed this crisis to previous administrations. The debt led to tensions with student transporters, who threatened to boycott services due to unpaid arrears, though recent payments have partially addressed some of these specific costs. Further complicating the fiscal situation, the municipality is losing at least 500,000 euros annually due to expired beach concessions. Since 2016, many lakeside operators have functioned without valid contracts, resulting in a lack of compensation to the municipality. This unregulated status has also contributed to uncontrolled urbanization on the shoreline. Local officials have noted that resolving these revenue losses and management issues requires complex cooperation with state institutions and the finalization of a Law on Beaches. ## Timeline ### 2026-08-23: Struga Municipality faces major revenue losses from expired beach concessions Struga Municipality is losing approximately 500,000 euros annually as beach management concessions have been expired since 2016, leading to unregulated urbanization and lost revenue. 4 sources. https://clstr.news/cluster/struga-municipality-faces-major-revenue-losses-from-expired-beach-concessions ### 2026-08-20: Struga Municipality faces 5 million euro debt The Municipality of Struga faces 5 million euros in debt, prompting student transporters to threaten a boycott over unpaid arrears accumulated by previous administrations. 3 sources. https://clstr.news/cluster/struga-municipality-faces-5-million-euro-debt --- Cite as: Financial and regulatory challenges in Struga Municipality. CLSTR, https://clstr.news/situations/financial-and-regulatory-challenges-in-struga-municipality