This decision highlights with clarity poor liquidity situation which increasingly is taking the local government of the City of Moratalla PP.
The real intention of the PP Moratalla tries to hide in such a hurry to reform the financial conditions of the first provider payment plan signed by the City Council, is not so much a reduction in the interest rate applicable to this loan of 5.5 million, but move to the next local government the obligation to deal with the repayment not only of the first plan of payments to suppliers, but also the second arises from the polls next year, which demonstrates the compromised current financial Hall, far to seek a balance in their accounts, now takes the position forward earnings (as it has done with the application of 1.5 million euros to the Ministry of Finance) and delaying payments to avoid taking the necessary measures to redirect the ruinous course to which the People's Party is putting their absolute majority.
Far from choosing an option that PP promotes greater savings in interest payable to banks (maximum reduction in the interest rate at 140 basis points 1.4%), choose one with the clear intention to extend for another year the vesting period of amortization of capital (going from 2 to 3 years, and the current amortization period remains 10 years, with an intermediate reduction in the interest rate on a 131 basis points), ie, is defer repayment of this plan for the first loan payment to suppliers, which would mean that next year the 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.
If as argued from the PP, with the intermediate reduction of the interest rate, the City would save nearly 200,000 euros per year, with the maximum reduction in the interest rate (option requested by the PSOE), the savings would increase by about 14.ooo euros, which could well be used for other purposes given the situation in which there is minimal
Source: PSOE Moratalla