Portal de Murcia
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With the new operations, saving for municipal coffers are nearly six million euros
Councillor of Finance, Isabel Martinez Conesa, has signed two new loans to refinance indebtedness concerted operations with the background for Financing Payments to suppliers (FFPP) in recent days.
The amount of debt subject of this refinancing is 34 million euros, that new conditions contracted with financial institutions (BBVA and CaixaBank), a fee of 1.45%, compared to 4% which was in force.
Remember that since there was a reduction in the price of loans signed with the Instituto de Crédito Oficial (ICO) in 2012, from 5.9% to 4%.
All these operations result in a total savings for the City of nearly 6 million.
The authorization of the Ministry of Finance and Local Government (MINHAP) to refinance loans Financing Fund Payment to suppliers opens the door to cancel the Plan of Adjustment, almost eight years earlier than planned, as finalized in the 2012 for a period of 10 years, namely until 2022.
Balance Adjustment Plan 2012-2022
More than two years have passed since the city of Murcia, like all local entities (3,869) which concluded loans with FFPP, approve the Adjustment Plan 2012-2022, which extended its validity entire repayment period debt with the ICO for concerted lending under the first mechanism Financing Payment to Suppliers.
This Plan has marked the municipal management in the last three years, setting targets for implementation of the revenue and expenses that the Municipal Corporation has applied and allowed strictly comply with all parameters that marks the Ministry for cancellation: spending rule, level of debt (54% of revenues, well below the limit of 75%) and Middle Pay Period (29 days, below the limit of 30 days).
The achievement of these strategic objectives shows that the diagnosis made in 2012 when the Plan was the successful adjustment was made.
The loss of income required an intensification of efforts and fund management and rationalization of expenditure.
Therefore, the Adjustment Plan 2012-2022 included from source a comprehensive set of measures that have resulted in a decrease in maintenance costs of 18 million euros, maintaining and improving citizen services.
Cancellation of Adjustment Plan has as a direct result of being able to allocate the budget surplus, if any, to the implementation of financially sustainable investments.
While the Plan has been in place, the destination was the amortization of debt.
Since tracking Adjustment Plan has meant achieving stability in the municipal accounts, its strategic lines continue to govern the financial policy of the City of Murcia as a guide to rigorous economic and financial management of public administration.
Source: Ayuntamiento de Murcia
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