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The PSOE has a motion on the payments to suppliers in the councils (01/04/2014)

The breadwinner Municipal Socialist Group, Rafael Ruiz, recalled that "the provider payment mechanism has meant transforming the commercial debt of the municipalities in financial debt. In May 2012 long-term loans ten years were formalized with two deficiency, payment and cancellation of debts to suppliers previously., local authorities had to approve a plan of adjustment that should be accepted by the Ministry. "

Ruiz has detailed that "the interest rate fixed by agreement of the Government Commission for Economic Affairs, March 1, 2012, will be reviewed quarterly on each payment date.'s First interest rate that was reported was 5,939%" .

The Socialist councilor said that "as a conclusion we can say that local authorities have been forced to enter a credit operations long-term, high interest rate and with an added requirement to comply with some adjustment plans accepted by the Ministry of Finance and Public Administration. "

Lorca The mayor added that "we speak of a state policy that no collaborated in the definition for local authorities, questioning their own municipal autonomy and represents a considerable cost to the municipalities themselves."

"As noted above, such operations were formalized in May 2012, with 2 year grace period will be from May 2014 when local entities to begin the repayment of loans. This will mean they will have to do against a much larger payment had been doing in the first two years, and some of them will be extremely difficult to pay. however, payment is guaranteed, since it would detract from participation in state revenues Ministry Finance and Public Administration. Faced with the problem that will mean paying the repayment of this loan for some local authorities offer a reasonable solution and according to the circumstances of each local entity, "he stressed.

López Ruiz reported that "the agreements containing the motion are:. First - That the City of Lorca Spain urge the Government to review the conditions of financial transactions arranged by the LES under the Payment Plan . Suppliers Reviewing these conditions will be using. Extending the grace period, the extension of the repayment period, the interest rate reduction to determine this review, the Ministry of Finance and Public Administration convened the National Commission for Local Administration . Segundo -. Lorca That the City Council request the Ministry of Finance and Public Administration two years of absence, zero retention for municipalities that have not adopted Adjustment Plan, spent almost two years with a retention of 50% of the PIE. Subsequently, follow up with a retainer, not exceed 25% to pay off their debt. "

Rafael Ruiz finished reviewing "the motion filed by the Municipal Socialist Group was unanimously adopted at the plenary session held on Monday."

Source: PSOE Lorca

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