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The Official Gazette of the Province (BOP) of Badajoz publishes this Friday the regulatory bases of the Financial Fund of Reimbursable Advances to local entities of the province of Palencia, which contemplates an investment of 10.4 million euros to which municipalities can be accommodated “at zero interest”.  

The Official Gazette of the Province (BOP) of Badajoz publishes this Friday the regulatory bases of the Financial Fund of Reimbursable Advances to local entities of the province of Palencia, which contemplates an investment of 10.4 million euros to which municipalities can be accommodated “at zero interest”.

The president of the Diputación de Badajoz, Miguel Angel Gallardo, announced the publication at a press conference in which he said that it is a measure taken in the general budgets of the provincial institution for 2016 and is also “one of the commitments of the deputation for this legislature “.

In his speech, he recalled that the Budget Stability Law puts a “ceiling of expenditure” on public administrations and although there are savings can not be spent, but added that the delegation of Pacense “planted and sought legal mechanisms that already existed in others like the one in Seville to make it possible for that money to reach citizens “.

In this way, explained that the aforementioned fund has a game of 10.4 million euros to be distributed among municipalities “as repayable loans” and has acknowledged that they would have liked to have amounted to 30 million euros but that the aforementioned law and the ceiling of expense prevents them from “being able to reach more”.

Gallardo has emphasized in any case that, within the framework of this fund, two calls will be opened, one in March and one in September, so that municipalities that are not “ready” or “have not the necessary conditions “to be able to access the first one can do it in the second one, when in addition the aforementioned amount could be extended via Repository of Treasury.

“The deputation becomes a ‘good bank’ with this item, does it mean that the rest are bad? No, it means that we are better because the bank, logically that is a company and needs a benefit, charges you for the money because what it does is sell you the money and we do not sell money, we lend money, “he pointed out, to clarify that said money will be lent” with zero interest “.

Details of the fund

The president of the provincial institution has indicated that four lines have been established to which the municipalities can avail themselves, a treasury line to be reimbursed in twelve months, a loan from the legislature to be repaid in four years, refinancing of debt with a return to the deputation in 10 years and investment loan that includes a return also in 10 years.

It has also indicated that the municipalities that want to access this fund must meet a series of requirements to safeguard the guarantees of return such as having an agreement signed with the Autonomous Collection Body, the approval of the request by the municipal plenary session, have liquidated the 2015 budget and be in force for 2016.

In relation to the two calls, has also added that the March will open the day after its publication in the BOP and will close on May 31, as well as that municipalities, regardless of the number of inhabitants, can access a credit of a maximum of 800,000 euros that should start paying from 2017.

Finally, Gallardo pointed out that the deputation has maintained contact with municipal representatives through strategic meetings in which this “innovative and advanced measure had an extraordinary acceptance”, while it has defended that the councils are the “least indebted” administrations ” from Spain.

“We must remember that we are the least debt we have, therefore only 0.3 of the debt that this country has are the councils, the rest have the municipalities to a small extent and the State and the autonomous communities to a large extent “, concluded Gallado, who has been accompanied by the deputy delegate of Economy, Manuel Borrego, and the director of the area, Julián Expósito.

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