The Finance Minister Cristobal Montoro. / ULY MARTIN (COUNTRY)
The Ministry of Finance is working on a plan to reduce the heavy burden of public debt in the budgets of the autonomous communities. The idea, according to sources who heads the Department Cristobal Montoro, goes through restructuring the regional debt.
In the coming days the government economic leaders will meet to outline the details of the plan. It is planned that next week Hacienda convene a Council of Fiscal and Financial Policy (CPFF) -the executive body for dialogue with those responsible for finance autonómicos- to provide regional barons definitive financial solutions that affect the debt and accumulated as to which issue from now.
Among them, Hacienda studies establish a mechanism for the new debt mutualisation. Thus, the legislature earlier plan to issue hispanobonos -a joint issuance of debt in the communities by the Treasury so that they can benefit from the favorable conditions that currently gets the central bank in the markets-recover .
Economics is radically opposed to a rebate of regional passive
Sources Ministry of Finance explained that it has opened a new era for economic and political situation. Highlight the good time living the average cost of debt issued by the Treasury -the market is at a minimum of the last 150 years and prospects after Draghi announced plan to start buying government debt is that the weather is prolonged. Therefore, a series of measures arise to remove the fat -in the form of debt and financial costs have ossified communities. This would affect the repayment schedule and the interest burden they have to pay for their debt Regional Executive
.
The regions have increased their debt more than 86,000 million euros in the last three years until it reached the 232.009 million, equivalent to 22% of GDP. Most of this increase corresponds to the liquidity injections through state funds Supplier Payment Plan and Regional Liquidity Fund (FLA).
The Executive noted with concern this level borrowing and admit that impairs the consolidation of regional accounts. So prepare a restructuring of the regional debt. In Hacienda intend to design an instrument to “put some counters to zero.” And do not rule out any possibility. Not even removes a portion of the debt of communities such as La Vanguardia forward. This formula would be for the State a part of what has made the Provider Payment Plan and anotase FLA. And rid of this heavy burden on communities. But in the Ministry of Economy radically discard any removed. The Minister Luis de Guindos was adamantly opposed to this formula. And one of the proposals would happen to cancel regional debt underwritten by investors or financial institutions with more expensive more advantageous conditions for new government debt. Payment terms be extended and interest reduced. However, nothing is yet decided. In Hacienda remember that any aid would in return for commitment s to advance setting regional budgets.
Another measure that is on the table is the good Montoro FLA. It would be a credit to those communities that have more sound your accounts. Treasury wants to transfer the Treasury good condition all communities and in summer after offering new financial facilities to the most backward territories reduce the red -Les reduced the interest on loans they have granted and I extend them within refoulement wants to extend it to more adherent communities. Galicia, for example, has already announced that it would add to this new way of state funding if approved
A plan to reduce health bill
The Ministry of Finance admitted that communities are going to generate a ball with health debt. Health spending is the most important regional budgets. And in this game emphasizes the cost of drugs. Treasury plans to create a fund for autonomy can settle this debt and get lower the average payment period within legal limits (30 days). At the time, participates in an interministerial group to reduce health bill without having to apply further cuts. The technicians of the ministry are collecting possible solutions to improve management and achieve savings. Among the proposals highlighted the centralization of health equipment leasing, among others.
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