The City Council of Jerez in the House has approved in special session Monday, with the only voting for the PSOE, which is the local government with a majority, the UI and the abstention votes against PSA and PP, a reorganization plan which will, among other things, a financial transaction with Cajasol 3.2 million for payments to suppliers and creditors with invoices outstanding recognition for lack of credit.
Mayor Jerez, Pilar Sánchez, has congratulated the more than 150 companies to which these will go a little over 3 million, and the debt that was kept for several years, as this injection of money represent a major relief for accounts of the beneficiaries and therefore the continuity of their business and maintaining employment.
Within the same item, with the favorable vote of PSOE and IU, the non-DB and vote against the PSA has been given the green light to the preparation of a Feasibility Plan to be submitted in three months , which aims to address the root structural economic problems that the City is dragging for many years.
According to municipal sources DIARIO Bahía de Cádiz, the spokesman for the Advisory Committee for Finance and Resources, Juan Manuel García Bermúdez, explained in his speech, that the Royal Decree adopted on April 24, is a tool that facilitates by the central government to municipalities to deal payment of debts that are taken with undertakings or autonomous. To do so, it establishes two types of measures. On one hand, the endorsement of bills backed by the ICO to six months, and also includes the possibility that consistories to obtain bank debt, to six years in return for payment of commercial debt is not recognized, where integrates the operation now approved by the House.
“This double line of assistance to municipalities and is being used by the Directorate of Fiscal and Financial Policy, following government guidelines. For one thing, endorsements are being made, so there are already companies that have claimed more than 3 billion euros from banks with which these operations have been concluded then, before six months, will be returned by the City and on the other side has requested a bank loan of 3.2 million, six years with Cajasol for payment to creditors and suppliers invoices not recognized by the municipal accounts for lack of credit, “stressed Juan Manuel García Bermúdez.
The first of the above-mentioned operations “has been made through the administrative procedure, without having to go to Parliament or any other body for approval. The bank loan it has to go to Parliament and be approved by it. This full, which approves the loan, you also have to approve any of the conditions that the law makes such loans. ”
The terms of the loan, said the delegate socialist, would have a negative balance in 2008, have outstanding obligations due and required to have approved the settlement of 2008 (already signed) and to approve a reorganization plan that will ensure the Ministry of Economy requested that the loan to be repaid in six years. That is why we are here to approve this Plan of Reorganization and the loan of 3.2 million for payment to creditors and suppliers. ”
García Bermúdez for “Loan of EUR 3.2 million will pay more than 150 creditors and suppliers, while the reorganization plan that is brought to House, is a macro table to six years in which demonstrates that we can restore it, a reason to 625,000 euros per year at an interest rate of 5.1%. We show that we can pay for it and present a financial plan 2009-2015. ”
The third deputy mayor also stressed that “the plan is presented, has been developed over the past two months with an outside firm, as required by the aforesaid Royal Decree. Ie, no gap to six, from the 2008 settlement, with the contents of the decree which has a positive gross savings will go to pay annuities of this loan. ”
The Plan of the 2008 situation, “where costs are more than revenues, despite the great effort made by the Government to reduce expenditure and increase revenue without raising taxes or the tax burden” said García Bermúdez that has also indicated that it intends to show that we will be able to generate gross savings. ”
It has also highlighted the improvement plan outlines seven mediated committed, will require a serious effort by all. ” These include eliminating or reducing non-mandatory services that the City provided voluntarily, setting mandatory services and restructure public enterprises, municipal staff Resize establishing “organizational horizon”, which is to be tender; Fit and moderate salaries of senior managers and directors; Increase efficiency in the services and calculate the unit cost of each; align rates wrecks and public service costs, and freeze new investments, except for maintenance and replacement, not funded other government or sale of assets.
On these measures, Garcia Bermudez said that “many of them are in progress,” while indicating that the Plan is that the House “is an express commitment in writing beyond that of Sanitation, the government undertakes Plan to establish a long-term viability, it has to be the ultimate solution to an economic problem that the City carries for 25 or 30 years with the cooperation of both governments. The aim is to establish a timeframe necessary to commit to pay all that is, to commit to clean up all the accounts, while still providing quality services, without raising taxes. ”
This Plan Feasibility require “consensus of the Corporation and the complicity of the social partners,” said the Socialist mayor, adding that the municipal government “is committed and at the same time it voted to plan, and forming part of same, to develop in a period not exceeding three months a plan for long-term viability leading to the final solution to the accounts and consider the provision of quality service that offers citizens Administration. A viability plan with concrete measures to apply, timing of their application, and mechanisms for management and monitoring. ”
The PSA has justified its rejection of the Drainage Plan is because the documentation has not been given sufficient time for study, and no concrete action, “contains only general, seeing forced to wait three months to learn the true meaning of it” .