The Chamber of Faro will request authorization from the Government to pay off the debt it owes to the State at once, under the Local Economy Support Plan, at the end of 2016. The idea is to take out a new loan of around 13 million from the traditional banks, «with more advantageous conditions», to “get rid” of this debt.
As revealed by the president of the Chamber of Faro Rogerio Cod Sul Informação and to Rádio Universitária do Algarve RUA FM, with this operation the Faro local authority «will regain its autonomy» and no longer be subject to the many limitations imposed on municipalities that adhered to this program, including the obligation to maintain municipal fees, namely the Municipal Property Tax (IMI), in the maximum amount.
The mayor from Farense was the guest of the radio program Impressões, which airs today, Wednesday, at 19 pm and can be heard on 00 FM. In this in-depth interview, in addition to this novelty, Rogério Bacalhau addresses some of the “hot” topics of today's Faro, such as the budget review, Praia de Faro, the railway and the future of Bom João, among others.
“We are thinking of renegotiating our PAEL. There are examples of some municipalities that have managed to do this and I have a very positive expectation that we will also be able to get money from the banks to pay”, he illustrated.
Loulé was one of the first municipalities in the country to free itself from the PAEL, as it anticipated the payment of the debt it contracted under the program at the end of 2014, using its own funds.
“If all goes well, throughout this year we will no longer be over-indebted. Because we have already paid in less than 90 days, we have the bills corrected and we just didn't comply with the item of having excess debt, which at the end of this year will no longer exist», guaranteed Rogério Bacalhau.
«From the moment Faro have the financial situation regularized, we will ask the Government to let us leave the PAEL. It makes no sense to continue with a rebalancing plan when the situation is already resolved», he defended.
If he manages to convince António Costa's team, the Chamber of Faro will seek financing from the bank and the mayor believes he will get a better deal.
“We are paying about 2,9 percent of spread PAEL and, at the moment, there are much cheaper loans in the bank. Therefore, there is a double objective here: to earn money with this operation, paying less for the loan and, simultaneously, to be free from PAEL, gaining autonomy to lower taxes, namely the IMI», explained the mayor from Farense.
“In terms of IMI, I think the rate we should have was 0,4 percent, instead of the 0,5 that we currently have. I believe that this value guarantees the compromise between the tax not being excessive and the municipality maintaining some investment capacity”, he added.
Faro received 16 million euros from the PAEL and currently owes "just over 14 million euros". By the end of the year, Rogério Bacalhau expects to lower the value of the debt, not only because the council writes off «500 to 600 thousand euros a year», with the payment plan, but also because «an extraordinary repayment of around one million will be made. of euros", in the ongoing budget review process.
"At the end of the year, we will be owing 12 to 13 million, which we want to pay with the new loan we intend to contract," he said.
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