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IU-Green blames both PP and the PSOE of the great debt to suppliers (15/05/2012)

The first thing we mean is that IU-Greens would have liked that suppliers have taken a long time, they had claimed at the time as it is fair.

However, only the excesses of the past socialist governments of Lorca and the inability to correct at the time of the first government of the PP in Lorca, have made the debt to suppliers has been accumulating, and that the delay in payment has seriously damaged the ability of many companies and small businesses, with the consequent impact on economic activity in the city.

Consider that debt to suppliers, according to the audit of 2007 was in an amount similar to that now wants to settle.

Remember it was at 27 million euros.

Remember also that is not the first time that the city of Lorca runs an extraordinary payment to suppliers.

In 2009 the government of Spain provided the acquisition of a loan of 19 million euros, and there was also a reorganization plan, by the way, as it can not be otherwise, failed.

Failed because they really can not be met, or otherwise collapse occurs.

Contrary to what is argued by the PP, the circuit of money now being paid not lead to the generation of wealth and / or economic activity because it will charge suppliers a large percentage of the debt cancellation.

IU-Green blames both the PP and the PSOE of the great debt that the City of Lorca has with its suppliers and believes that the action taken by the Government of Spain to pay it damages the City Council.

IU-green holds strong views regarding the procedure authorized by the government of Spain to pay suppliers, and can not endorse the proposal that brings the government team for 2 reasons:

First, because we are in no way responsible for the debt that the city drag.

Second, because it condemns the council to a state of collapse that preclude the provision of basic services.

In addition, this measure, the government of Spain, in fact, will exert a direct influence over municipal accounts and therefore also a direct intervention on the policies to be developed.

The government of Spain, thus, determines the political action and leaves no room for maneuver.

Just keep in mind that municipal revenues just to pay loans and will meet the payroll.

Municipal services will be reduced to a minimum.

The sport, despite the appointment of European city is squalid.

Culture out of breath.

Youth without incentives.

The doubly neglected districts.

The streets holes.

Blocked infrastructure (market square, young space, sports, social and cultural centers ....)

We are at a high level of debt (to banks, short and long term), approximately 59 million euros.

Which means we are about one per-capita debt of 650 euros, 100 euros more than in 2007.

If we add the 25 million E.

Credit is now proposed, the City of Lorca will be indebted to the banks in about 84 million euros, which is approximately 100% of the budget approved for 2011, and will involve approximately 130% of the budget that the City expected will this year 2012 (according to calculations being made by the council of finance)

The debt per capita will increase from 650 euros to almost 1,000.

The amount the municipality will pay the banks for repayment of principal and interest will increase from 9 million annually, more than 12 million.

And every month the City will pay 700,000 euros to 991,000 euros.

In total, the volume of credit which is proposed to approve, calculated to 10 years with the interest rate calculated at the cost of financing the public treasury plus margin of 115 basis points, which will add a net interest margin of 30 points basis, taking into account the distrust that the government of Mr Rajoy is generated in the markets, which consequently is making "risk premium" is closer to 500 basis points, we say that in total so you have to pay by 25 million euros will be another 10, 1 million.

Therefore:

In summary, the loan terms are unfair to local government.

These conditions are choking the town hall.

Financial markets and neoliberal policies, after plundering the families, now go for the municipalities.

In short, the 25 million loan will cost you the other 10.1 million Lorca.

And every month, the city of Lorca, in addition to the € 700,000 already paid for the debt you have, will pay about a million euros.

Source: IU-verdes Lorca

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