The municipalities of Mijas, Rincón de la Victoria, Torrox and Álora are the latest to sign credit agreements to enable them to settle outstanding bills to suppliers, some of which date back a decade or more. Vélez-Málaga and Benalmádena signed agreements on Friday.
Municipalities submitting lists of debts
Municipalities in Spain have been submitting lists of outstanding invoices to the Ministry of Finance in preparation for the recovery plan being implemented by the Government.
Nerja and the Provincial Fire Consortium
The Council is set to debate a motion requesting the Provincial Fire Consortium to demand payment of debts incurred by some municipalities, reported as being €8,399,956.10, and if payment is not forthcoming, to handle the matter via the Inland Revenue through the withholding of payments in advance or on account.
Municipal debts
The local Andalucian municipalities are in debt to the tune of €4,569 million as of December 2009 according to the Ministry of Economics and Finance.
Vélez-Málaga arranges loan to pay old debts
Vélez-Málaga Council has signed a loan agreement for €2.5 million with a local finance company in an effort to pay off some of its older debts to local companies.