The Plenary of Totana City Council yesterday approved, with the votes in favor of Ganar Totana-IU, PSOE and C's and abstention of the PP, the proposal of the Mayor to formalize a credit operation in the amount of about 8.4 million Long-term euros charged to the Ordinary Funds for financial needs during the 2017 financial year.
The plenary initiative included the formalization of this operation for a maximum amount of 8,499,241.73 euros, with the financial institution managing the Official Credit Institute (ICO), all within the scope of the Ordinance Fund promoted by the Ministry of Finance And Public Administrations to which the totanero Consistory is adhered.
In addition, it was agreed to authorize the mayor, Juan José Cánovas, to sign the draft of the loan for the amount quoted to subscribe with the Management Fund of the Ordinance Fund, under the plenary agreements dated July 15, 2015 and Of July 21, 2016.
The repayment term is ten years with two deficiencies and an additional two percent delay interest.
The City Council of Totana approved by means of a plenary agreement of July 15, 2015, the adhesion to the Ordinance Fund of Royal Decree Law 17/2014, of December 26, of measures of financial sustainability of the Autonomous Communities and Local Entities.
In the same, it was indicated that they could benefit from this initiative the municipalities that could not finance their operations of credit in conditions of financial prudence that were fixed by the resolution of the General Secretariat of the Treasury and Financial Policy.
In addition to financing the financial operations agreed with banks in accordance with the criteria of financial prudence, the said Ordinance Fund allows obtaining liquidity to be able to face the maturities derived from the debts that under the mechanism of financing the payment to Suppliers, is being compensated by the corresponding withholdings in the State Tax Participation.
Similarly, these Ordinance Funds also have the purpose of obtaining liquidity to pay the negative settlements resulting from the rules contained in the Local Finance Regulatory Law and which were also subject to withholding in the State Tax Participation , As well as dealing with the execution of final sentences pending payment by the City.
These adhesions also entailed the simultaneous approval of an Adjustment Plan which contained the living debt held by the City Council, as well as the projections of the different municipal economic indicators in application of the measures quantified in said plan.
It was also reported to the plenary of the municipal corporation, for its knowledge, of the evaluation of the Sanitation Plan for the 2014/2015 exercises.
Source: Ayuntamiento de Totana