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The City of Lorca, one of the first in Spain to receive approval for its adjustment plan, which will put in the hands of the local economy 25 million euros (03/05/2012)

The Consistory eliminates debt with suppliers and contractors with the loan of the Official Credit Institute

The Mayor of Lorca, Francisco Jodar, has informed this morning by the Consistory Councillor Municipal Economy, Luis Amador, the Ministry of Finance and Public Administration has approved the plan of adjustment of the City Council, becoming one of the first municipalities in Spain to receive the approval of the Central Government.

The mayor explained that "this approval will allow us to put in the hands of small and medium enterprises lorquinas almost 25 million euros, enabling the City Council remove the debt with suppliers and contractors."

The Mayor has called "a very heavy slab" the inheritance in this respect, while he assured that "we have managed to throw off a burden that was becoming unbearable."

Francisco Jodar has indicated that the reception of these 25 million "is a real shot of life to the socioeconomic fabric of our region that comes just when we needed it. Shortly Hall creditors will receive the amount due to them . In fact we already have plans to hold an extraordinary plenary session for approval of this procedure, which proceed to formalize the procedure. This plenary will be on 15 May. In addition, before May 25, will be implemented with the ICO loan, and the money will come to suppliers during the month of June. "

The mayor has stressed "the energizing effect that will mean this measure, which allows the Council to the counter to zero debt to suppliers, while we clean the era, as they say colloquially."

24.8 million to pay bills 6,550 730 companies

The ICO loan enables the City to close a loan of 25.8 million euros, an amount that will be in the hands of SMEs to which the Municipal owed them money, and whose number stands at 730.

The Mayor has stated, in this connection that has chosen not to negotiate, "take off" with the company, considering the difficult situation facing the town, beaten by the crisis and the effects of earthquakes.

Notably, at the outset, the City has conducted a phase of municipal information to providers whose principal dates were as follows:

March 21: publication of the complete list of local suppliers.

Until April 22: Deadline to benefit from the new payment system.

May 8: invoice verification period for creditors.

So far, according to data available to the economic area of ​​the City, about 99% of creditors have joined the checkout process.

The Mayor pointed out that the existing overall debt the City has been declining steadily since 2007, the year in which the amount inherited by the current administration amounted to 105.4 million euros.

By applying successive saving measures, the Consistory reduced this figure, placing it in 2010 at 98.2 million, while today, translates into 93.1 million.

The mayor is anticipated that from now on municipal management is marked 3 main objectives in the economic area of ​​work:

Elimination of commercial debt, something that will be achieved thanks to the 24.8 million euros to be placed in the hands of providers.

Delinquency law enforcement, making the local government pay for about 40 days.

This year we are getting noticeably reduce the payment period to suppliers, so that registered in January bills were paid in April, while February and are being paid.

Consolidation of a balanced budget; objective has been achieved with the accounts of 2011.

Source: Ayuntamiento de Lorca

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