The Municipality of Albufeira signed, on the 25th of June, with the General Directorate of the Treasury and Finances, the contract of adhesion to the Local Economy Support Program (PAEL), in the amount of 16.786.325,68 euros, with the objective of to pay overdue invoices.
This signature follows the request of the Municipality, in October 2012, to join the PAEL, in order to receive a sum of 25.044.445,12 euros, intended to settle the payment of municipal debts to suppliers overdue for more than 90 days.
In addition to the PAEL, the plan for restoring financial balance and sustainability also includes a financial rebalancing plan for payment of the remaining debt.
The Municipality of Albufeira therefore planned to contract a bank loan up to the amount of 10.059.389,97 euros.
However, in the last eight months, from October to June, the Autarchy made late payments and invoices that were in the process of financial rebalancing, totaling 10.855.024,61 euros.
In this way, the contract signed with the State under the PAEL involved an amount of only 16.786.325,68 euros and the financial rebalancing loan also registered a sharp decrease, falling to 7.462.484,80 euros.
"The decrease in the amount owed is essentially due to the rigor imposed in the control of municipal finances based on a rational use of resources, both financial and material, and also on a prioritization of priorities in the management options to be taken", highlights the president of Chamber José Carlos Rolo.
Between 2011 and 2013, the Municipality of Albufeira recorded an overall decrease in debt of approximately 13 million euros.
Comments