The application of the Municipality of Portimão to the Municipal Support Fund (FAM), in the amount of around 137 million euros, was finally approved this Friday by the Executive Committee and Monitoring Committee of that instrument for the financial recovery of the municipalities in difficulties.
Isilda Gomes, president of the municipality of Porto, told the Sul Informação that, after this approval, which culminates «more than a year of intense work and negotiations», the FAM will now have to be approved in a meeting of the Chamber and by the Municipal Assembly, followed by final approval by the Court of Auditors.
For next Tuesday, a session of «technical presentation» of the FAM is already scheduled, both to the members of the municipal executive, and to the Municipal Assembly, in order to make all the details known.
"By mid-April, we expect that the entire process at the level of local authorities is closed," added the socialist mayor, who said she was "very happy" with the official approval of the FAM.
"This is excellent news for the Portimão Chamber, but also for our creditors and for the entire economy in the region," said Isilda Gomes.
The approval of the FAM by the management bodies of this fund to support municipalities with serious financial problems culminates a six-year long process, which began in 2010, with the frustrated attempts of the Portimão Council, which began in the previous executive led by Manuel da Luz , to access the instrument that was then created - the PAEL, or Local Economy Support Program.
“After the PAEL process started in 2010, we were in negotiations for over a year and we were chasing the FAM. We finally got approval», added the president of the Portimonense Chamber.
Isilda Gomes advanced to the Sul Informação that the Municipal Adjustment Plan approved within the scope of the FAM foresees the “extinction of Portimão Urbis, as well as incorporating all debts, including those of Urbis”.
Despite the tightness in which the Municipality's finances will live over the next 25 years, due to the rules imposed by the FAM, the mayor emphasizes that, «from now on, things are defined. The Municipal Adjustment Plan guides and defines what can and cannot be done».
However, in this year when the Portimão Municipal Council was negotiating the FAM, the Algarve municipality did not stand still and, for example, contrary to the option of the Municipality of Aveiro, led by the social democrat Ribau Esteves, it decided to pay a lot of debt.
Isilda Gomes points out that, so far, "36 million euros have been paid, which greatly reduced the debt, namely to banks, but also to other creditors, many of them small companies." Last May, the Chamber announced the payment of a total of 3,6 million euros in debt to 479 creditors that they had to have, each, up to 50 thousand euros.
In addition, despite the difficulties, there are investments that have advanced, particularly in terms of the much needed repaving streets and roads. «Next Wednesday, the Chamber meeting will have another competition for street arrangement. We have little money, but managed carefully., there are always investments that can move forward», concluded the mayor of Portimão.
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