We are constantly working to improve the site, and to add more laws to our database. If you are receiving value from using our site please consider signing up for a subscription to support the site and to get many additional benefits for you.
Key Benefits:
(You can close this ad by clicking anywhere on the page.)
Key Benefits:
The Government's Delegated Committee for Economic Affairs, at its meeting on 1 March 2012, has approved the Agreement for the implementation of the financing mechanism for payment to the providers of the institutions. local.
Estimating of interest the dissemination of the main features of the Agreement, on the proposal of the Ministers of Finance and Economy and Competitiveness, its publication is available in the "Official Gazette of the State" as an annex to the this Order.
Madrid, April 16, 2012. -Government Vice President and Minister of the Presidency Soraya Saenz de Santamaria Anton.
ANNEX
Main features of the Government's Delegated Commission for Economic Affairs Agreement for the implementation of the financing mechanism for payment to providers of local entities
First. Borrowers of the borrowing operation.
Local entities as provided for in Article 2.3 of Royal Decree-Law 4/2012 of 24 February, determining the reporting obligations and procedures necessary to establish a financing mechanism for the payment to the suppliers of the local authorities.
Second. Maximum funding per local entity (including its self-governing bodies and dependent entities that belong to it).
The principal of the outstanding, liquid and payable obligations outstanding, including the Value Added Tax or, where applicable, the Indirect General Tax Canarian, and not including interest, court costs or any other ancillary expenses.
The obligations must be included in the following documentation:
(a) Certified relationship to be presented to the Ministry of Finance and Public Administrations by local authorities until 15 March 2012, as referred to in Article 3 of the Royal Decree-Law 4/2012, of 24 June 2012. February.
(b) Updated relations with local entities in the Ministry of Finance and Public Administrations of the individual certificates issued by the contractors at the request of the contractors.
c) Updated relations with local authorities in the Ministry of Finance and Public Administrations with the identification of the applications submitted by the contractors to obtain those certificates individual and have not been answered.
The Ministry of Finance and Public Administrations will validate the relationship of contractors for each local entity by authorizing in each case access to the financing mechanism and the maximum amount to be formalized for each entity. local.
You will also specify the amounts to be transferred for each of the contractors, according to the following order of priority:
1. The oldest payment pending obligation.
2. Those of a small and medium-sized enterprise or self-employed. Among them will take precedence over the older payment obligations over the most recent ones.
3. Those who have called for the execution of their right of recovery before the Courts of Justice before 1 January 2012. Among them will take precedence over the older payment obligations over the most recent ones.
It will be the contractor's power to benefit from this mechanism for the recovery of its outstanding obligations. Contractors may also voluntarily communicate to the local entity their decision to apply a discount on the principal.
Third. Development of the operation.
It shall be for the Official Credit Institute to manage and transmit the information necessary for the development of the borrowing operation that each local entity subscribes to.
The Ministry of Finance and Public Administrations will transmit the maximum amount of financing for each local entity to the Official Credit Institute, as well as the final relationship of the contractors and amounts that need to be addressed. Such amounts shall be the result of applying, where appropriate, the reductions proposed by the contractors.
Fourth. Additional conditions.
Local entities must present an adjustment plan that meets the following requirements:
(a) collect sufficient current income to finance its current expenditure and the amortisation of borrowing operations, including that which is formalised in the framework of this standard;
(b) the current revenue forecasts contained in this estimate shall be consistent with the evolution of the revenue actually obtained by the local entity in the financial years 2009 to 2011;
(c) adequate financing of public services provided by public charge or price, for which they must include sufficient information about the cost of public services and their financing;
(d) to collect the description and timing of the implementation of the structural reforms to be implemented as well as the measures to reduce administrative burdens for citizens and businesses to be adopted and the quantification of this reduction;
e) to collect measures relating to the limitation of salaries in commercial or senior management contracts of companies in their public sector, reduction of the number of directors of the Boards of Directors of the same and to the regulation of the indemnification clauses according to Decree-law 3/2012, of February 10, of urgent measures for the reform of the labor market;
f) conform to the model that will be approved for the purpose.
The Ministry of Finance and Public Administrations shall assess the adjustment plan submitted for the purposes of the concertation of the aforementioned debt transaction.
An instrument will also be provided to guarantee the payment to contractors of local entities that do not have the borrowing operation foreseen in this mechanism. In this case, the financial cost shall be passed on to the local entity and the appropriate corrective measures shall apply.
Also, local entities undertake to respect in their borrowing operations the principle of financial prudence.
Fifth. Deadline for operations.
A maximum of 10 years with 2 years of lack in principal amortization.
Sixth. Amortization of operations.
Operations will be arranged with the flexibility required to be able to make early cancellations.
Seventh. Interest rate for the borrower.
The equivalent of the cost of financing the Treasury to the specified time limits plus a maximum margin of 115 basis points to which an intermediary margin of a maximum of 30 basis points will be added.
Eighth. Concertation of the borrowing operation.
The funds required for the functioning of this mechanism will come from credit institutions that voluntarily participate in the financing of this facility.
The Institute of Official Credit will act as an agent with the collaboration of the credit institutions that will adhere and that will have sufficient management capacity and territorial implementation for the delivery of the services formalization, payment and management.
Ninth. Retention of participation in State taxes.
The amortization of the principal interest and commissions of the local entities ' borrowing operations will be covered in the event of non-compliance with the State's withholding of the participation of the entities local in state taxes.
10th. Effective.
When the expected maximum amount of funding is exhausted and in any case by December 31, 2012.
