Portal de Totana
www.portaldetotana.com
In a bleak picture, a window always opens, a loophole to Hope, however small.
Today, taking advantage of the Extraordinary Plenary session to elect the components of the polling stations for the 10N, I have included in the Agenda, two proposals that must be approved before the 22nd due to the legal imperative of deadlines.
These are the measures contemplated in the Agreement of the Delegated Commission of the Government for Economic Affairs of March 14 that was published on October 9 after the final decision on the 7th of the same month.
These are measures to help (not to give away) to municipalities in a critical financial situation, as is the case of Totana.
The agreement includes 5 measures, of which two clearly affect us, the 3rd and 4th.
The third, mandatory and the fourth, optional prior approval of the 3rd.
In what affects us and must be approved by qualified majority (Absolute of the corporate) by the amount of the operation: At this time and as of September 30, 2019, our official debt (Without contingencies or forecasts of sentences), rises to 99,182,350 euros.
Of those, 28,500,000 are with the Private Bank and 70,500,000 (rounding) with the Public or Management Funds.
WHAT ARE THE MEASURES TO WHICH I PROPOSE TO WELCOME?
The 3rd one that is mandatory and consists of the unification and refinancing of all the loans in force until December 31, 2012, which amount to 65,500,000 euros with varied interests, but the one with the most interest is 1,311%.
This amount represents 66% of the total official debt of the City Council.
The proposed operation would unify 65,500,000 euros in a single 10-year operation, with a fixed interest of 0.874% and two years of lack in which only interest would be paid.
So far, in summary, the 3rd measure.
As for the 4th measure that is optional or voluntary (that is, it would not make sense without the 3rd) and I also propose it to the Plenary and would be complementary, it consists of the following:
Expand the operation 10 more years.
That is, going from 10 years to 20. This agreement means reducing capital amortization (when the deficiency ends) from 8,231,000 euros per year to 3,658,000 euros.
That is to say, we will pay 4,573,000 euros less per year for debt repayment and a great respite for municipal budgets by 2039.
Requirements imposed on us by the Ministry?
Update of the debt and the Adjustment Plan that we have currently approved is not modified and we must comply to accompany financial consolidation.
These measures would be compatible with the possibility of receiving Payment Plans to Providers, although they are not contemplated by the positive evolution in the payment terms that would improve and greatly with the reduction of annual amortization expense (4,573,000 euros).
Conclusions:
A very interesting operation that gives us oxygen to plan the reduction of debt and the possibility of stabilizing the finances facing the necessary programs and investments to which now we cannot in any way.
Nobody gives us anything, but it helps to get out of the situation that we are in 2015 and is meeting the objectives of the previous Government Team and this, after the approval of the First Adjustment Plan, with many difficulties in 2016 and for which being Mayor Winning Totana we have always bet.
The ideal situation would be not to need to take advantage of these measures, but the reality of the City of Totana is what it is and we have not been able to choose or avoid it when it was borrowing without any responsibility.
The Corporations that come behind and also the generations of totaneros, will find a City Council in a better situation than the current one and that is very important for the future.
As Serrat sings: "Today can be a great day ..." It is up to us, the beginning of a recovery would be, planned and rigorous responsible.
Good morning and happy thursday.
Juan José Cánovas
Source: @jjcanovas
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