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The Department of Economy plans to eliminate the negative cash balance two years ahead of schedule thanks to the new grace period established by the Government (06/04/2017)

This is an advantage that will be possible thanks to the savings that this measure will achieve in the next 3 years within the municipal coffers.

The Consistory celebrates tomorrow an extraordinary plenary session to approve the modifications that will allow the City Council to avail itself of this measure.

The Councilor for Economy and Finance in the City of Lorca, Fulgencio Gil, has informed that the Municipal Council will benefit from the flexibility of the payment conditions established to pay the payment of the Payment Scheme Suppliers.

This is an advantage derived from the Resolution of March 29, 2017 of the General Secretariat for Local and Autonomous Financing, which allows for the extension of the grace period for the loans formalized with the Fund in liquidation for the Financing of Payments To Suppliers and to the Ordinance Fund.

Fulgencio Gil said that this is a modification for a period of depreciation, which is an important relief for municipal accounts and also to boost the measures we have been implementing to reduce municipal debt, which has gone from 105 million in 2007 To the current 45.

The City Council is going to approve a new Financial Sanitation Plan with validity of 5 years (2017-2021) in the course of a plenary session with extraordinary character that will be developed this next Friday.

The Financial Sanitation Plan that is submitted for approval by the Municipal Plenary will be an adaptation of the one approved by this same body last November 28, which is destined to continue improving the remaining treasury.

The planned modifications discard credit operations aimed at the recovery of the remainder.

Yes it is contemplated the credit operation that is going to be formalized soon with the Fund of Financing to Local Entities for payment of judicial Judgments, concretely the ones derived from urbanistic agreements failed.

The Councilor for Economy has also indicated that the annual savings in amortization for the new deficiency is as follows:

REDUCTION FEE AMORTIZATION NEW PERIOD OF LACK

(Millions of euros)

2020

2021

Annual Amount

1.75

3.5

3.5

1.75

0.00

Source: Ayuntamiento de Lorca

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