KIEV, March 27 – Local governments in 2009 have faced difficulties in smoothly financing the expenses of local budgets, which affects the ability of Ukrainian cities to pay their debts, according to a Credit-Rating Agency report.

"In 2009, it's expected that the strengthening crisis will affect the ability of Ukrainian cities to pay their debts. Before elections, and in conditions of growing social tensions, the issue of the priority for paying debts over social payments will become urgent," reads the report.