Andalucía holds most councils in debt

(Illustration only)

ANDALUCÍA One of the many reasons for the disastrous conditions of the nation's finances is in the indebtedness of its municipalities (by municipality read council). One example, offered in an article on the subject in El País, is a village in the province of Burgos: population 48 (yes, no zeros missing); debt: €8,520 per head. It is the most indebted council in Spain, just above another village in Barcelona that runs a debt of €8,344 for each of its inhabitants. There are 8,116 municipalities in Spain, and almost all of them went haywire with expenses and building and other investment when 'the cows were fat' (a good old rural expression). Two of the highest are in Andalucía:>>>

Are you on the tax debtors' list?

Minister Cristóbal Montoro
(Photo montage: desordencreativo.com)

MADRID The Government announced recently that it is preparing a list of the worst tax evaders and debtors. The Minister for the Treasury and Public Administrations, Cristóbal Montoro, announced the draft of a measure at a plenary session of the Senate before the holidays. It is a matter of adapting present regulations and thus enabling them to publish a list of major tax evaders and those owing large amounts to the system. This, he said, was carried out in other EU countries such as the UK and Ireland. (A more detailed article on this subject will soon be available on SpainInformer.com)

Ten municipalities of Cádiz owe over €700 per inhabitant

Jimena de la Frontera
(c)2012 Alberto Bullrich

At the 'good' end of the scale are Jimena, Algar, Chipiona and Zahara de la Sierra

CÁDIZ (Agencies) Ten of the 44 municipalities that make up the province of Cádiz are in debt to the tune of over €700 per inhabitant, according to the latest 2011 figures. The worst debtors are Cádiz,  the capital city itself, Los Barrios, Algodonales and San Roque. The information comes from the Ministerio de Hacienda y Administraciones Públicas (Treasury, for short-ish), which publishes the 'live' debt of every municipality in Spain every year. The figures reveal that on December 31, 2011, the municipalities of the province owe almost €663m, which is>>>

Emergency numbers inoperative because of Council debt

Tarifa

TARIFA The Local Police emergency number, 092, has been inoperative for about a month, according to reports from would-be users.  Sources at the Police station say that 'there is a debt problem'. In other words, money is owed to Telefónica. Other sources in the town hall say that the debt, which also includes fax numbers in the town hall, will be paid today. The new Council also set about changing the phone service from Movistar (i.e. Telefónica) to Vodafone.

Election campaign ends with Spain under attack by markets

SPAIN (El País/A.R-A.S.) The Spanish government on Friday sought to reassure investors it could service its debt as the country remained in the eye of the storm that has been ravaging the euro-zone sovereign debt market. According to figures compiled by Bloomberg, Spain's risk premium on Friday moved above Italy's for the first time since August but steadied as the European central bank stepped in again to buy Spanish government bonds. The spread between the yield on the benchmark 10-year government bond and the German equivalent closed up 17 basis points at 476 basis points after having hit a new euro-era record high of 503 basis points at one point in the session. Speaking at a news conference after Friday's Cabinet meeting, the last before Sunday's general election, Economy Minister Elena Salgado said there was "absolutely no concern" about Spain's capacity to meet its debt commitments. At an auction held on Thursday, the Treasury was obliged to offer a yield of over seven percent on 10-year government bonds, the highest rate since 1997.>>>

La Línea workers cut traffic to protest non-payment

(Photo: Paco Guerrero for Europa Sur)

LA LINEA (Agencies) The municipal workers of La Línea were back on the streets this morning to protest that they are still owed a series of payments and the list is getting longer. They gathered near the convention centre, marched towards the frontier and also to the Town Hall. Thay burned tires and held up traffic in the area for several minutes. According to union leader José Porras Naranjo, next Monday they will be owed their salaries for July, to which must be added those of May and June, the 'extraordinary' for the summer (it is usual in Spain for an annual salary to be divided into 14 payments: two 'extraordinary', summer and Christmas), two half salaries for 'work days' and what remains of the Christmas payment. "We are at the worst possible point in Town Hall debts to its workers," says Porras.

Government injects €3.4 billion to help municipalities pay their debts

SPAIN (Agencies) It has been in local, national and international headlines for weeks: Spain's municipalities owe vast sums, mainly to small local businesses. Every single municipality in the Campo de Gibraltar is in debt, with more 'black holes' appearing by the minute after new Councils take over from their predecessors. Political colours make no difference. Last Tuesday, Zapatero announced a wide range of economic and social measures during the State of the Nation debate in Parliament. They were approved by the Cabinet on Friday. Among other things such as helping small business in general, a spending ceiling for the regional governments and more protection for mortgage holders who face having their homes seized for non-payment, the Cabinet also authorized the Official Credit Institute (ICO) to help municipalities pay small businesses that work for them in an effort to relieve municipal debt. The institute will pay small businesses and self-employed people who have pending bills in Town Halls before April 31st this year. First in line are small businesses with less than 250 employees. Payment will be made directly through cooperating banks because the method is simpler.

Jimena electricity debt is over €220,000

(Photo: TioJimeno)

JIMENA (TioJimeno) Further to our item on elecrticity being cut off at several municipal buildings, we read on TioJimeno that the reason is that the municipality owes the power company, Endesa, €70,000 in long standing unpaid bills. The total amount owed to the company is over €220,000, according to the Spanish website. A meeting is to take place between Endesa management and the Council to try to find a solution to the problem. The photo shows a sticker the company put on one of the meters they disconnected on Tuesday.

Spain pays up as contagion fears return

SPAIN (Financial Times) Spain’s short-term cost of borrowing rose sharply during a €4.6bn debt auction on Monday, casting fresh doubt on the recent claims that Europe’s fifth-largest economy had broken away from the concerns affecting the region’s troubled periphery. Amid mounting speculation about the possibility of Greek sovereign debt restructuring, and with investors nervously eyeing the electoral success of a eurosceptic party in the Finnish elections, Spain was forced to borrow at substantially higher levels in a sale of 12 and 18-month treasury bills.>

Debt arrears highest since 1995

SPAIN (Agencies) Debts in Spain have reached levels unknown since 1995. Un paid mortgages and loans given by banks, building societies, cooperatives and other financial establishments rose to 6.19% in February, against January's 6.06%. It is the fifth consecutive rise in the loan sector. According to preliminary figures from the Bank of Spain, the total debt in the Spanish financial system is €112,458 million to end of February, €1,769 more than in January. Current law classifies a loan as 'doubtful' when the title holder, private or a company, accumulates three consecutive months of non-payment. Another aspect of the law, in the process of change at present, is that even though a property may be returned to the financial entity that gave a loan on it, the debt is still outstanding until it is fully paid up, even if the property is sold by that entity, the monies obtained not being put against the loan. (We will be reporting on the change as soon as it changes.)

La Línea owes over €4.2 million for landscaping

LA LÍNEA (Agencies) La Línea is in a list of the ten Spanish municipalities that owes most money to landscaping firms. In tenth place, the council owes over €4 million, according to the sector's federation, the Asociación Española de Empresas de Parques y Jardínes (ASEJA). The list is headed by Madrid (€64million), followed by Granada (about €10million), Zaragoza (over €8.5), Parla (over €7) and Alcalá de Henares (almost €7); after that come Huelva, Valdemoro and Almería (some €5million each) and La Línea de la Concepción. The federation says that they are being 'throttled' by these overdue debts and asks the government to 'sanction this kind of municipal indebtedness.'

Campo municipalities owe €470 million

(Agencies) The recession is causing financial chaos in many municipalities, including those in the Campo de Gibraltar. Debt has increased to €469.3 million, with Algeciras heading the list at €180 million, followed by La Línea with a €108,000,000. San Roque, number three on the list, owes some €82.8 million; Los Barrios, €69,000,000; Tarifa, €24million; and Jimena €4,500,000. Castellar thus far continues to be free of debt. The type of debt varies in the proportions owed to Social Security, Hacienda (Inland Revenue), banks or suppliers, and, while the above figures are those given by the various councils, some are higher according to opposition parties.>