The Valencian Community has returned to the State from 2012 to 2016 a total of 2,025 million euros of benefits through the Autonomous Liquidity Fund (FLA) and the Payment Plan to Suppliers, a figure that rises to 3,817 million if interest is added with which these loans have been granted.
This region is the second most state fund has received, only behind Catalonia, which has returned to the State until 2016 a total of 2,992 million euros of the nearly 53,600 that it has lent through the FLA and Suppliers, up to 4,787 million counting the interests.
The possibility of a reduction of the regional debt has returned to the debate this week by the proposal of the candidate of the PSC to the Generalitat of Catalonia, Miquel Iceta, that the communities need a remission of the money that they owe to the State. In the case of Catalonia, it would be a reduction of almost 60,000 million that it will owe to the State when it concludes this year.
The Balearic Islands and Valencian Government share the idea; They argue that they have contracted this debt with the Government because they have been poorly financed in recent years, so they should compensate them with a loan https://www.paydaynow.net/installment-loans-for-bad-credit/.
The Government created these two lines of financing in 2012, although only the FLA persists; they are annual loans for ten years with advantageous conditions for the autonomies with problems to go to the markets, which, after the years, have been at some point all but Galicia.
According to the data published by the Treasury, collected by Europa Press, they have received altogether 162,254 million euros until 2016 and among all, they have returned 12,220 million (they have paid another 5,794 million euros of interest).
CATALONIA, AT THE HEAD
Catalonia is the autonomy that has received the most money and therefore has returned the most. The interest rate on these loans is 0.834 percent, except in two years, which was left at 0 by the decision of the Government. In addition, the FLA amortizations began in 2016 because the Executive decided to delay the return of the principal that year, which should have started a year earlier.
Behind Catalonia is the Community which has received the most funds and therefore has already returned the most, 2,025 million (plus 1,792 million interest); Andalusia ranks third, with 1,665 million (and another 962.7 of interest) returned to the state coffers. It is followed by the Community of Madrid, although in its case only by Payment to Suppliers, of which it has returned 1,268 million (plus 157 million interest).
According to the information of the Ministry of Finance, the communities pay the repayments of the principal with the funds received by these same mechanisms in the year of expiration.
A POSSIBLE REMOVAL
The possibility that the State will pardon a part of this debt is not new; the own minister of Property, Cristóbal Montoro, admitted already in March that was “abierto” to study suggestions on this subject.
The minister framed the reduction of indebtedness in keeping pace with the private sector, which in the years of the crisis has been debased by 430,000 million. “In global terms, the Spanish economy has already deleveraged to the private sector and now is the time to de-leverage the public sector, which is the one that makes the registration of more than 99% of the debt,” he said.
Montoro assured then that he waited to listen to the experts to whom he had commissioned a report on regional financing since the withdrawal could be part of this reform. And the experts did comment on the issue in their work presented in the summer.
A part of them believes that for the CCAA to return to the market and stop asking the State for money, a reduction in the debt is needed, so they propose withdrawals even taking into account what part of these financial commitments come from insufficient financing and what part of having spent more.