The Diputación de Cáceres will grant the municipalities reimbursable “loans” at zero interest

The Provincial Council of Cáceres on Tuesday presented the Financial Fund for Reimbursable Advances to Local Entities, an initiative endowed with ten million euros that will allow the institution to grant “loans” to the municipalities of the province that must be returned at zero interest.

This is an initiative launched by the Government team of the Caceres province whose regulatory bases will be taken to the next Plenary, which will be held on an extraordinary day on the 31st, being the local holiday Friday in Cáceres. Once approved, the project would come into force as of the month of July.

The objective of this fund is for local entities in the province of Cáceres to be able to resolve their treasury “strains” through this money, as well as to face the possibility of undertaking investments for the benefit of municipal services.

The president of the Diputación, Rosario Cordero; in the company of the second vice president and deputy of Economy and Finance, Alfonso Beltrán; has announced the initiative on Tuesday.

Cordero has indicated that the situation of the municipalities of the province is “quite committed” after the local reform of 2013 and the latest State Budget Laws, which “conditioned” local entities the possibility of arranging credit banking operations for the financing of investments and services.

Also, the president has ensured that the payment plan to suppliers is “suffocating” some municipalities due to the payment of “very high” interest, calculating an average interest rate of between five and six percent for the return of the amounts of this plan, in addition to withholdings on the participation of state taxes.

Therefore, this new fund, which has already been implemented by other Spanish councils and will be done through the Autonomous Agency for Tax Collection and Management (OARGT) of the Diputación de Cáceres, aims to “keep moving forward” and create “a model of rural life “in the municipalities of the province, explained the president.

LINES OF ACTION

Specific

The program includes a total of four lines of action. The first of these is for the remediation of the remaining Treasury for negative general expenses and for the payment of final judgments in the Courts. In this case, the maximum repayment term is 30 monthly installments or before the renewal of the Corporation.

The second line will be destined to reimbursable advances for the financing of investments, for which a return period of 120 months has been established, starting on January 1, 2017.

On the other hand, the third of these is constituted for refundable advances destined to the refinancing of long-term credit operations carried out by the local entity and to the financing of payments of debts with the Social Security. The Local Entities that request this help, will have a maximum return period of 120 monthly payments.

Finally, the fourth measure will be aimed at the repayable advances to meet temporary needs of treasury, a line of action that aims to provide liquidity to the City Council in a “timely manner” and therefore its repayment term will in any case be less than year.

In short, Rosario Cordero has stressed that it is “a very important financial tool” that is “put in the hands of the municipalities” to solve the existing problems in the local economic-financial environment.

DEFENSE OF THE DIPUTATIONS

On the study of the foundation ‘¿Hay Derecho?’ which will be presented this afternoon in Madrid and which states that the elimination of provincial councils would mean an immediate saving of almost 600 million euros, the provincial president has stressed that “the provincial councils perform a task that no other administration can do”.

In fact, the president has mentioned that when they think about saving expenses “they do it from an office and not putting themselves in the place of the people”.

In this line, Cordero has ensured that the Diputación de Cáceres is a “close administration” and has reminded that 70% of the municipalities of the province are municipalities with low number of inhabitants, hence the “need” for the work of the provincial institution.