"The city of Totana has invoked the three plans of the Ministry of Finance to pay suppliers for an amount that exceeds 35 million euros", according to reports from the PSOE in Totana in a statement.
"Since the municipality is insolvent, banks have been unwilling to negotiate loans for the payment of the debt to the suppliers directly with the municipal government. Therefore is the ministry who signs the transaction with banks and acts as an intermediary between these and the City ", the statement added.
"Ministry to collect the debt retains the council every month, an average of 248 746 euros from participation in that State taxes distributed to municipalities, representing 50% of which corresponds to our town each month ".
According to the Socialists, "with such withholding the ministry pays the loan to banks, but as there is enough to pay the fee includes amortization plus interest, banks charge interest first and what is left, which is very little , I intended to take it from the amortization ".
"One of the first loan of ministry that was 29.6 million, in 11 months the council has paid debt repayment only 0.8 million euros and 1.7 million interest.'s Say that the council has 11 months paid 2.6 million euros, of which 68.5% was allocated to pay interest and only 31.5% to remove debt, "he added.
"Every day for the last 11 months, we have paid 5,298 euros to the ministry of the first loan interest."
"Drawing on the amount paid in the last 11 months, the council will take to repay the loan at 34.2 years ministry. What is a mortgage for next nine corporations, which will decrease by 50% the income they receive from the state."
"Do not forget that this ministry loan must be added two others totaling nearly 6 million euros, which have not yet begun to pay."
"These data are those that have forced the local government of the PP to undergo the intervention of the Ministry of Finance, which reported a binding budgets each year before taking them to heart. The goal of intervention is to control spending ministry and raise taxes and fees to increase revenue. "
"The ministry added debt to banks, suppliers, tax authorities, social security and return of gains totaling more than 146 million euros. Repayment of this debt, as the government is considering the PP, hampering the City of Totana operation ".
"The mayor is busy in completing the legislature as Corporations future and worry to resolve the situation. Municipal Socialist Group To this attitude of the mayor and his team is irresponsible and unsustainable because each day that goes by without putting measures effective will make the situation worse. "
"For this reason, once again, the Socialist Group assumes responsibility and initiative that has no government, working with a viable proposal to deal with the debt of 146 million euros," the statement concluded.
