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The Caravaca City Council approves a credit operation to compensate for the drastic decrease in municipal revenues due to the COVID-19 crisis (26/05/2020)

| Adhesion to the Fund for Financing Local Entities 2020 is another extraordinary measure that the Department of the Treasury brought to the Plenary for financial prudence to ensure all the obligations and services of the Administration | During the months of state of alarm, the City Council receives practically no income, as municipal tax payments and certain rates were suspended or deferred In the telematic session, the motions presented by the Socialist Group on the self-employed, the Housing Plan and local commerce were also approved. The City Council of Caravaca de la Cruz, within the extraordinary economic measures adopted as a consequence of the COVID-19 crisis, is going to arrange a credit operation and joins the Local Entities Financing Fund for 2020. Both points were approved in the second plenary session that the Municipal Corporation holds electronically; the first with abstention from the opposition and the second unanimously by all groups. As explained by the head of the Treasury and Economic Planning area, "these are measures taken for financial prudence, since during the state of alarm, maturities have been suspended, the payment of certain rates and the period of payment of municipal taxes has been extended , reason why the City Council's income in these months is practically nil and it must face even more needs ". Therefore, the objective is to prevent a specific lack of liquidity that prevents the local administration from continuing to comply with its obligations and services.

The maximum amount of this policy is 1,500,000 euros, should it be necessary to meet needs during the next twelve months. For its part, the Local Entities Financing Fund, which the City Council has been hosting since 2015, represents an effective decrease in the financial burden borne by the municipal budget.

The refinancing of loans is redistributed in 10 annuities, with two years of cadence.

It is a measure that has been carried out every year because it supposes aid for financing and paying suppliers. In the plenary session, the accounts for the Average Supplier Payment Period (PMP) were produced, which in the first quarter of 2020 is 153.89 days.

As stated in the Treasury report, 760 payments have been made for an amount of 563,311.59 euros within the 30-day period and 361 payments for an amount of 1,173,371.78 euros outside that period. In the session, the motion presented by the Municipal Socialist Group was also approved so that the Plenary may urge the Governing Council to comply with the agreement adopted in the Industry Commission dated May 7, 2020 and launch a line of direct aid to self-employed workers in the Region of Murcia, in the amount of 1,500.00 euros for those workers who have had to stop all activities due to the proclamation of the state of alarm and in the amount of 750.00 euros for the self-employed who accredit a 75% income reduction. Likewise, the motions presented by the Socialist Group on the rental subsidies of the Housing Plan of the Region of Murcia and another that referred to the elaboration of a plan to relaunch local commerce in the COVID crisis were approved.

These two points came forward thanks to the abstention of the councilors of the government team, who did not cast a favorable vote, as the proponents did not accept to include amendments or new points of agreement in the text.

Source: Ayuntamiento de Caravaca de la Cruz

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