Portal de Murcia

www.portaldemurcia.com

• Home
• Business
• Hotels
• Restaurants
• News
• Advertisement

Murcia Mayor and Chairman of the Committee on Farms and Local Financing FEMP welcomes the adoption of the funding mechanism for payment to suppliers.

Michelangelo Chamber holds that the agreement will ease the financial health of local government and will encourage entrepreneurship and job creation.

The approval by the Council of Ministers of the funding mechanism for local authorities to pay suppliers' places in our hands the tools to solve a serious problem and meet with businesses and the self, which is an oxygen for our economies. "

Miguel Angel House, Mayor of Murcia and chairman of the Committee on Farms and Local Financing of the Spanish Federation of Municipalities and Provinces, said "finally in Spain we have a government that listens to the voice of municipalities and provides us with measures that will beneficial to the Local Government and for entrepreneurs. "

The system agreed by the Council of Ministers for Local Governments attending the funding mechanism designed to pay off your debts with suppliers granted a period of ten years to repay the loans and a grace period of two years with an interest "acceptable "by local authorities, about 5%.

The amount to which this mechanism can amount to 20,000 million euros.

In this way, remember House, it meets the demand of local government, need to clean up their books and encourage entrepreneurship and job creation in paying off debts to many companies.

In addition to the payment to suppliers, the measure will allow a major injection of liquidity into the productive economy, which will stimulate dynamic economic activity, especially SMEs and the self and solve the debt problem of local entities that impede their normal operation.

Support the Ministry of Finance

President of the Commission on Financing Local Farms and welcomes the Ministry of Finance and Public Administration has "been so receptive to the dramatic situation faced by municipalities", while it has expressed confidence that the mechanism will now approved for improve the financial health of the municipal coffers, "unlike the failure that accounted for the ICO approved in the previous legislature."

The measure passed by the Council of Ministers is not an isolated incident.

On the contrary, it relates to other agreements announced by the Ministry of Finance as a way to make cash down payment of 50% of the final settlement of the participation of local taxes in the State and of the ten year period to repay advances on account for 2008 and 2009.

Source: Ayuntamiento de Murcia