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The FEMP will be asked to remove the limitation of indebtedness to the City Councils in 2011
The FEMP Executive Committee has agreed unanimously by all members, asking to eliminate the limitation of indebtedness in 2011, for projects already started, the co-financed with other institutions or agencies that are autonomous and multi-year and and replacement costs, established by Royal Decree on deficit reduction.
The FEMP Executive draft a motion that will be sent to all Local Governments of Spain to adopt it in full during the month of July to submit the agreements to the Government and the parliamentary groups of the Congress and Senate for their content be collected by the Finance Act 2011 State.
In the motion, the councils will ask the government to eliminate restrictions on borrowing for the cases mentioned above and taking into account the one hand, the level of indebtedness of each of the municipalities and the other, their economic and financial, in the setting of limits on borrowing.
The FEMP considers that the limitation to borrow long term, as established by Royal Decree Law of 28 May not be applied indiscriminately to all local authorities alike, since the circumstances and the solvency of each they are not identical.
The President of the FEMP, Pedro Castro, said after the meeting of the Executive Committee, in addition to the actual situation of each municipality must be noted that many multi-year projects and associated financing national or European programs that could be affected, as regards compliance with obligations already assumed by local entities. In this same case would be ongoing projects committed by treaty or replacement costs, for which also requested an explicit authorization.
Another of the decisions made by the Executive Committee of the FEMP has been requesting the Government to repay the advances on settlement accounts for the year 2008, estimated at some 1,600 million, begin in 2012 and returned from of January 1, 2011, as planned initially. Pedro Castro stated that the councils are aware that they have to assume this responsibility, but asked that consideration be a further delay due to the difficulties they will face next year Consistories.
ICO Credits
On the other hand, the FEMP Executive has agreed to ask the Government to implement with urgency the direct line of credit aimed at Local Authorities to facilitate the payment of debts and unpaid strong and independent companies, which was due prior to 30 April 2010, as required by law for late payment in commercial transactions, which sets a maximum period of 30 days.
The Act, not yet published in the Official Gazette, covers a period of 30 days for the Government through the ICO implements this line of credit, which would be granted on preferential terms.
As new development, the text says "additional provision that the fourth-credit refund may be made case by case basis and which has not been written off before, after the entry into force of the future funding reform local. The cancellation will be instrumented, therefore, whether the resources from Participation in Government Revenue (PIE) and linked to the recognized obligations to suppliers.
Conventions
The FEMP Executive Committee also approved the contents of four cooperation agreements, two with the Ministry of Labour and Immigration, and two with Turespaña and the National Institute of Public Administration (INAP).
