Indebted Ayuntamientos to pay flexible suppliers first

 

Further to yesterday's announcement by Deputy PM, Soraya Saenz de Santa Maria, that the government is considering paying off Ayuntamiento debts, government is considering paying off Ayuntamiento debts further information has now been forthcoming in the proposed measures which this could involve.

Companies and individuals willing to accept a discount on the amount that they are owed could be given priority in the waiting list, meaning that in exchange for a reduction in the amount of debt owed, creditors could find themselves leapfrogging other companies who had been waiting for payment even longer, but could not afford to take a reduction.

The central government has given local authorities until March 15 to report back on the exact nature of their debts. Once their financial situation has been determined they will be required to present plans to the Finance Ministry before the end of March on how they intend to settle their debts, and to indicate what they need to ensure their financial viability.