Municipalities may find themselves in a situation where they do not have sufficient funds in their budget to cover expenses. This leads to the search of foreign resources, either in the form of repayable or non-repayable funds and hence in debt. The question of the indebtedness of municipalities is one of the discussed topics in the Czech Republic. This is due to the recently increasing municipal debt, which accelerated in the 90´s of last century and still affects more than half of the municipalities. The aim of this paper is to find out the debt situation of all 300 municipalities in the Moravian-Silesian Region, namely the ability to repay their debts and to find out whether this repayment is a problem for municipalities. For this purpose, the ratio of the total debt to the current budget balance was selected. The municipalities were monitored between the years 2010 and 2016. It was found that in the case of an indebtedness indicator regarding the ability to repay its liabilities in the medium term, the municipality in the Moravian-Silesian Region as a whole do not show a high degree of risk, more than sixty percent of them are stable and few municipalities have to focus on improving it.