Portal de Totana
www.portaldetotana.com
The Ministry of Finance and Public Administration has responded, through an information note from the Ministry of Public Administration, Councilman Services City of Totana, Victor rafts, to the letter it sent to the minister, Cristobal Montoro , to Early last June.
From the Ministry of Public Administration they say: "Unable to do personally as would be his wish, the Minister of Finance and Public Administration has asked me thank you on behalf of the trust that demonstrates to make him share their problems, particularly on the debt of the City of Totana ".
The information note is expressed in the following terms:
The financial debt at December 31, 2014 was 73.2 million, the outstanding liabilities of the general administration of the city council in 2014 were 17.1 million euros, but the outstanding receivables, discounted provision for doubtful debts, they amounted to 20.7 million euros.
The remaining cash for general expenditure is set, in 2014, -1.0 million euros, for the general administration of the municipality.
The municipality benefited from the mechanism of payments to suppliers amounting to 35.2 million euros corresponding to 9,784 bills.
This amount will not be financed by loans from the Fund for the financing of payments to suppliers because the local authority did not submit an adjustment plan that could be assessed favorably by the Ministry of Finance and Public Administration.
This debt is offset by deductions participation in State taxes and amount pending amortization is included in the amount of the financial debt of 73.2 million euros cited above.
By the Central Government they have established various measures to financially assist local entities:
• provider payment mechanism (three phases in 2012 and 2013).
Local authorities could convert commercial debt due, liquid and enforceable debt repayable in 10 years, the first two of lack.
Totana Town Council, having not favorably valued the adjustment plan was required could not access formalize this financial transaction in any of the three aforementioned phases.
• extraordinary financial support measures contained in Title II of Royal Decree-Law 8/2013 of 26 June.
The council submitted a plan of adjustment was assessed favorably and welcomed the following measures:
- Advances from its participation in State taxes for a maximum amount equivalent to the amount of payments on account in 2014 for this concept, ie 5.6 million euros.
This advance repaid over a period of three years.
- Extension of the period of repayment of balances that were in charge of the municipality in final settlements of participation in state taxes for the years 2008 and 2009.
- Application of a reduced rate of retention shall be with applying the 25 percent limit laid down in Article 108.Tres of Law 17/2012 of 27 December on the General State Budget for 2013.
- Okay, only for 2013, for the conversion of short-term financial transactions which have concluded before the entry into force of Royal Decree-Law in long-term operations.
- Authorization for the conclusion of an operation of long-term credit to finance the negative cash remaining general expenditure of the year 2012, and pending obligations to implement a budget and accounting registered to December 31, 2012 in the account ' creditors apply to transactions pending budget ".
• Establishment of a Fund Management for municipalities in financial risk situation (Royal Decree-Law 17/2014 of 26 December).
With maturities of the Fund's lending operations that have concerted municipalities that are in that situation, so maturities are funded one year they are paid in 10 years.
It was necessary for the local authority to refinance their loans under conditions of financial prudence and approve a plan of adjustment subject to the assessment of the Ministry of Finance and Public Administration.
The municipality of Totana received benefits, but did not.
• Possibility of substituting the application of deductions to cover debts arising from the mechanism of payments to suppliers for lending transactions with the Fund Management (Agreement of the Government Commission for Economic Affairs).
This measure was enabled a second chance to those local entities not formalized loans Financing Fund for payments to suppliers.
An adjustment plan was also needed.
The municipality of Totana received benefits, but did not.
Accordingly, various measures have enabled financial support to municipalities with problems to which access has been the city of Totana, but who has resigned, and that would have enabled a better financial management of the company and improved its solvency.
However, for what concerns the Fund Management may apply for membership in July if it can not refinance able to apply for financial prudence or next year if its financial problems remain.
Source: Ayuntamiento de Totana / Foto: archivo Totana.com
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