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Murcia Mayor and Chairman of the Committee on Farms and Local Financing FEMP has participated in the meeting of the National Commission for Local Administration

"The municipalities seamless support to the Government of Spain in the fight for control of the budget deficit," said Miguel Angel House, Mayor of Murcia and chairman of the Committee on Farms and Local Financing of the Spanish Federation of Municipalities and Provinces, after the meeting held by the National Commission for Local Administration (CNAL).

This commitment is "firm and unquestionable because it is an essential measure if we are to restore economic growth and foster job creation," said House, who attended the meeting this morning in Madrid, chaired by the Minister of Finance and Administration Public, Cristobal Montoro, who also attended by the President of the FEMP, Juan Ignacio Zoido, along with other representatives of local authorities.

House has insisted that the establishment in 0.3% of the roof of local government spending is a goal "for which we have already put to work", as in the line of payment to suppliers that has approved the Government of Mariano Rajoy, whose mechanism of operation was also discussed in CNAL.

The agreed system for local corporations to pay its debts to suppliers takes place with a loan of ten years 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.

The operation was carried out by involving the State through a five-year bridge loan to the municipalities.

The funding will have a government guarantee that, in turn, is ensured by the participation of local authorities in the revenue.

In this way, remember House, it meets the demands of the municipalities in need of 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.

Source: Ayuntamiento de Murcia