Hacienda provides a brand new oxygen ball to probably the most indebted municipalities | Economy | EUROtoday

The Ministry of Finance improves the circumstances of the fund aimed toward relieving the financial circumstances of probably the most indebted municipalities. Among different measures, it’ll enable the extension till the 20 years of the amortization of the loans with the Financial Fund to Local Entities and a displacement of the maturities till the top of 2025. This plan could be accepted as much as 85 areas with financial difficulties, as reported on Monday the division led by the vp María Jesús Montero. The adhesion by the municipalities, which should current a monetary sustainability plan and meet sure necessities, is voluntary. Among the entities that might host are Jaén, Algeciras, Jerez de la Frontera, Parla or Gandia.

The settlement has been accredited on Monday within the Government Delegate Commission for Economic Affairs (CDGAE) and improves the circumstances of the pending operations of sure municipalities with the Financial Fund to Local Entities, a mechanism to present better liquidity to the municipalities, particularly these with the much less sanitized accounts. The pending capital of the credit that will profit from the measure quantities to greater than 4,223 million euros.

On the one hand, the maturities that happen between June and October 2025 of the pending operations with the Financing Fund to Local Entities could also be prolonged till December 30 of this yr, which in line with the Treasury will cut back the annual amortization price by 50%. On the opposite, an extension of the type of formalized loans is contemplated till December 31, 2024 with the financing fund to native entities of 10 years further to the present expiration train. This interval will probably be 20 years for municipalities which have a kind within the Real Estate Tax (IBI) exceeding 0.8%. These measures could have as a restrict on October 31, 2070.

The Ministry additionally signifies that intervals of lack which can be in drive earlier than the applying of the settlement reached on Monday will probably be suppressed. The foremost amortization will start on October 31, 2026 and will probably be prolonged, at most, till October 31, 2070. “A amortization system with increasing quotas is established, which will allow municipalities to generate savings to face future maturities,” he says in a word.

On the opposite hand, the cancellations by the municipalities by way of withholdings of their participation in State Taxes to compensate for money owed contracted with the Fund in Liquidation for the financing of funds to suppliers or to the Management Fund, to not formalized, on the time, on the time, the corresponding loans in line with the procedures of funds to accredited suppliers.

The municipalities might change this mechanism with the subscription of a mortgage charged to the Management Fund. Loans could be formalized by quantity equal to the residing steadiness of the debt they’ve with these compartments of the financing fund. The monetary circumstances of those operations will probably be much like these of the loans already formalized to which the amortization interval is prolonged. The amortization interval of this new mortgage would even be till October 31, 2060 or 2070, and not using a interval of lack.

Beneficiaries

The measure is voluntary and the municipalities that meet sure circumstances and have submitted previous to March 31, 2025, the liquidation of the 2024 or 2023 price range, or the knowledge of the execution of the price range of the fourth quarter of 2024 or the price range of 2025 or The earlier agreements and didn’t, supplied that they’ve a residing debt as of December 31, 2023, better than 110% of the present earnings, or that the estimated quota of the loans with the funding fund to native entities by 2026 is at the least 95% of the price comparable to 2025.

The municipalities certified at excessive danger by the General Secretariat of Autonomous and Local Financing of the Ministry of Finance might also request the development of the Ministry.