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PSOE: "The PP Moratalla about saving the city on Friday May 30th with lies" (31/05/2014)

Moratalla The PP seems to have fit nicely in Moratalla defeat in the European elections.

This was staged some of his councilors, as the president of this political formation in the town, Juan Pascual Soria, since along the development of this plenary stop cause no rebuke and Socialist councilors, but also now trying misrepresent the position of the PSOE to the financial claims of the government roll, PP absolute majority, far from seeking to use its political majority to solve problems, constantly try to postpone them causing a worsening financial situation, and constantly repeat , save the furniture this term and "come back to atranque".

In full last held on Friday May 3, the position of the local government of PP was to follow politically conditioning the future of the municipality, and not settling for partial intervention promote the City in exchange for the advance received from the Ministry of Finance 1 , 5 million euros, that is, in exchange for money in the short term, is now extending the necessary measures needed economic correction institution in exchange for anticipated revenues and defer expenses.

That is, not only have you completely removed the financial maneuverability Hall exhausting the possibility of borrowing the same as they have so indebted to the maximum, that is, that neither the banks nor the state already give credit to the government signed based on the clauses in the agreement governing the payment received by the Ministry of Finance, but also eliminated the budgetary room for maneuver to reduce investment in this institution at public expense.

And now try to spend the "last bullet" that remains in terms of financial maneuver, ie, temporarily play with the income and expenses of the City by way of anticipated revenue, as they have already done, and defer expenses, as claimed by the modification of the conditions of the first provider payment plan to the City Council welcomed, and as set out in the following agenda:

And now the PP government team aims to create confusion Moratalla against the PSOE with statements like the following, causing misinformation neighbors with clear intent to political use.

This is what they are writing and saying:

"The PSOE and IU Moratalla, voted against lowering interest rates Provider Payment Plan, which the City Council had to Moratalla eligible to pay the debt left by the PSOE government team in the previous legislature. This lowers the municipal coffers save nearly € 200,000.00 "

Something completely false and out of the positioning of the PSOE in Moratalla, and explained:

The position held by this game is to qualify for one of the three options offered by the Ministry of Finance to lower the interest rate applied to the first plan provider payment of 5.5 million euros, in particular, benefit from the point 3, which is the largest reduction in the interest rate, low shrinkage, causing the greatest possible savings to the session.

These are the three options:

Option 1. Extending the amortization period of 10 to 20 years and grace period of 2-4 years.

And a reduction in the interest rate of about 41 basis points.

Option 2. Extension of grace period in a year, ie goes from 2-3. And the current amortization period remains 10 years, with an intermediate reduction in interest rate about 131 basis points.

(Option chosen by the PP)

Option 3. Maximum reduction rate at 140 basis points.

(Option intended by the PSOE).

Ie away from choosing the PP option that fosters greater savings in interest payable to banks, select option 2 with the clear intention to extend to one year the period of lack of principal amortization, ie, is to postpone the repayment of this plan for the first loan payment to suppliers, which would mean that next year next municipal government will have to deal with the amortization of the equity shares of the two plans provider payment requested, which greatly increased financial costs to have to face, conditioning and even more financially drowning the new administration.

And why does this do?

On more than one occasion we have said that the main problem of the City of Moratalla is its high level of debt, but the deficit, ie, the negative difference between expenditure and income, and it can no longer finance based on endudarme more.

And what meant the PP?

Not perform the necessary to balance the deficit, since that would make unpopular decisions at the electoral level, putting their partisan interests above the general interests of the municipality, which is continuously conditioning the performance of future Town government reforms, and Worse, reducing the chances of corrective measures in the future, making this most traumatic form such future measures that ultimately end up paying both public employees and residents of the municipality, as the defer them increases the cost of taking such measures, therefore, instead of using its absolute majority to bring solution to the serious financial problems of the municipality, on the contrary the defer and increase.

Ultimately, what it claims team PP government is to save the legislature without having to undertake the necessary measures of economic correction that requires the City Council, and transferring the problems to the next government, as they did in previous legislatures, which means exponentially deteriorating situation of public finances and a clear position of irresponsibility, further demagogic terms constantly used to ensure the information confunsión of our neighbors against the opposition parties.

Since PD compared with both the local government of the PSOE in Calasparra, should make it clear that the choice for the same has been the 3, the maximum reduction in the interest rate paid to banks, so that the greatest possible savings is achieved for the municipality, same choice made by the PSOE in Moratalla, and which the PP has not chosen, because what you most want is not possible to generate maximum savings in interest payments, but save the legislature at all costs not undertake unpopular measures to reduce the deficit.

Source: PSOE Moratalla

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