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The mayor Juan Patricio Castro PP ask the place that is integral with the municipalities that are faring worse and urge the Government of Rajoy to extend by two years the waiting period of the loan, increasing the repayment period and reduce the interest rate

The Socialist councilor Juan Patricio Castro asked in Parliament this month to the local PP to urge the Government of Spain to relax the conditions that once were imposed to municipalities to access the provider payment plan with an extension of two years grace period on loans, an increase of amortization period and a reduction in the interest rate to no more stifle local economies.

Furthermore, this initiative also includes that "zero retention" those municipalities that have no adjustment plan and that "retention have been suffering up to 50 percent nearly two years," Participation of State Revenue is applied ( PIE).

In this sense, the socialist mayor explains that the councils have so far paid only losinteresesy, starting this year, will begin to pay the first part of the capital since clarifies Castro, as the operations were formalized in May 2012, having two-year grace period will be from May 2014 when the municipalities have to start with the repayment of loans.

For the PSOE councilor, "this will mean that councils will face a much larger refund they were doing in the first two years, so it will be extremely difficult to pay."

Business for banking

According to Castro, to access loans payment plan providers have a "draconian" conditions and are a huge business for the bank, which has received money at 1% interest, however, applies to one high consistory almost 6%, a "stickup."

Finally, the socialist mayor refers to the reduction in revenues of local governments because of the economic crisis and the measures implemented by the Government of Rajoy, among which the increase in VAT and local reform will municipalities involved, leaving them powers and even without economic capacity.

"Hopefully, this time, the Government House is integral with the municipalities that are faring worse and support this motion," Castro ends.

Source: PSOE Murcia