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Jose Garcia Murcia, spokesman for the municipal council of IV-V warns of the ingenuity of councilor responsible for finance of the City of Lorca, Mr. Amador, when he speaks so superficially the benefits of the government plan (RD Act 20/02 / 2012) for the payment of debts to suppliers who builds the Town Hall.

Councilman says that while IU-V for suppliers can be a major relief, however, leads to the City to enter into a great new short-term mortgage and interest high, which will lead to restrictions on the possibilities of spending and so therefore expected to impact very negatively on the provision of municipal utilities.

It should be remembered in this connection that the City of Lorca already accumulated bank debt of 60 million euros, which requires a monthly payment (including interest and amortization) around the 700,000 E.

With the government's move is expected to make a payment application providers outstanding in the amount of at least 30 million euros, which would entail the purchase of an equivalent amount of bank debt, as if finally announced it is 5% interest and five years, would cost the municipality a total of 4.2 million with monthly payments of 567,000 euros.

That is, the city of Lorca would have to pay monthly to banks 700,000 euros of debt that now has 567,000 more would buy, that is, about 1,265,000 euros.

José García Murcia delved into the issue as to criticize the government and its general economic policy, since in this crisis situation is not acceptable and should not be admitted that the banks, as can be financed at 1% interest in auctions from the European Central Bank to pay the local government 5%.

In this regard we must remember that the Spanish Federation of Municipalities and Provinces, is asking about grace periods of two to three years, repayment terms between eight and twelve and of course interest rates much lower, obviously issues should take account of Mr. Amador before dropping from the rooftops.

Consider that Michelangelo himself Chamber, Mayor of Murcia and chairman of the Finance Committee of the Spanish Federation of Municipalities and Provinces has warned that the conditions in which operations are realized provider payment put on the table, have to enable continuity of municipal activity.

In this regard, Councilman Garcia Murcia, UI-V, is saying that the city of Lorca should not lead to citizenship for the loss of benefits and services.

"We believe that citizens should not be subject to further cuts."

"The neglect of policy actions and greed of the speculative economy should not pay the middle class and humble."

The City of Lorca, before the announcement of the measure of payment to providers approved by the Government and was immersed in a budget-setting process that is in a recovery plan, we feared very costly for Lorca.

Now, the measure and therefore increase by 50% of local bank debt, we fear that entails very great losses in the provision of services from the City, as well as increased taxes and public prices to increase, as compensation, City tax revenues.

Source: IU-verdes Lorca