The Government has just approved the revision of the Municipal Adjustment Plan (PAM) of Vila Real de Santo António (VRSA), a measure that will allow the City Council "an annual savings in interest close to 1,5 million euros", according to Conceição Cabrita , President of the Chamber of VRSA.
This plan was created following the adhesion of the municipality of Vilarealense to the Municipal Support Fund (FAM). His review is "a fundamental step to renegotiate the financial and commercial debt, refinance the loans taken out in recent years and obtain significant reductions in interest rates", according to the Vilarealense Chamber.
Conceição Cabrita says that the expected savings, in the order of 1,5 million euros, will be achieved “through the refinancing and restructuring of the term of bank loans, which will contribute to the full regularization of municipal accounts”.
In practical terms, the revision of the PAM “will allow the payment of all debts to suppliers and creditors and provides for the granting of bank guarantees from the Municipal Support Fund (FAM) for the municipality's loans. It also ensures the financial stability of the municipality with the updating of budget projections», described the Chamber of VRSA.
The plan also provides for the definitive integration “of the structure and activities of the municipal company VRSA SGU – already in dissolution – consolidating its assets and liabilities”.
On the other hand, says the municipality, the green light given by the Government «also represents a proof of the trusteeship in the management of the City Council which, over the last two years, has reduced the debt by more than 7 million euros, through the Budget Balance program».
"This is the result of three years of intense work that recovered the credibility of the City Council, leaving it economically and financially organized in the coming years, especially in terms of indebtedness", said Conceição Cabrita.
"This entire process represents a vote of confidence in the effort of this executive to balance a municipality that was in a situation of rupture and is now beginning to stabilize itself in an unequivocal way with structural measures", concludes the mayor of Vilarealense.
The plan will now be submitted to Organs municipal bodies – City Council and Municipal Assembly.
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