Nearly 20 municipalities will be required to join the Support Fund … – iOnline

Nearly 20 municipalities will be required to join the Support Fund … – iOnline

The Government estimates that 19 municipalities are obliged to adhere to Support Municipal Fund (FAM), new mechanism of financial regulation that will be optional for other 23 municipalities, Lusa said today the Secretary of State for Local Government.

“We estimate that 19 municipalities are in the group of mandatory and 23 optional access access,” said António Leitão Amaro, compared to municipalities that will have to resort to the FAM for its financial restructuring.

The Secretary of State for Local Government declined to disclose which already are the municipalities that will be required to join the FAM, “which will be done at the right time”, since the law regulates only the new regime comes into force on Tuesday and is still being finalized the process of validating the accounts of 2013

“This is a very important piece that comes to a truly new recovery scheme financial municipalities that are in strong disequilibrium “said António Leitão Amaro.

The law 53/2014, published today in the Official Gazette, establish conditions for the financial recovery of the municipalities, it is expected cases of “mandatory referral” situations and “optional feature”.

The capital of the FAM is EUR 650 million, to be subscribed by 50% by the state and the remaining half by all municipalities and that it must be done within a maximum of seven years, beginning on 2015, ensuring the state already support the municipalities in most critical situation.

The official pointed out that, in the universe of 308 municipalities, registered in the last three years, “an evolution of the very favorable accounts”, confirmed by the latest figures of budget execution, which results “effort by local councilors, but too much of the various rules that the government was creating “.

“What we create for the first time is a regime that regulates the conditions of the imbalances of now and the future and it does in a way that is both balanced because firstly asks an effort to unbalanced municipality , which also calls for an effort to your creditors, but also to the state and other municipalities, “considered Leitão Amaro.