The president of the Diputación, Fernando Rodríguez Villalobos, has informed this Friday at a press conference about the details of the 2017 edition of the Reimbursable Advances Fund of the provincial institution. It is an economic fund intended to offer interest-free advances to the town councils, with a refund to the taxes collected on their behalf by the Provincial Agency for Economic and Fiscal Advice (Oapef).
This instrument, created in 2007, closed its 2016 edition with advances of 52.64 million euros granted to 63 municipalities, after making a total of 70 million euros available to them. The new edition of the FEAR, as stated by the president of the Provincial Council, will also have 70 million euros available to the municipalities.
To this end, the provincial institution plans to hold an extraordinary plenary session this month, in order to approve the bases of this new edition of the FEAR and publish the call, so that the city councils that need the aforementioned advances can submit their applications.
UP TO SIX LINES
This year, the bases will contemplate six lines of refundable advances, for the payment of “mandated” loans arranged for the remediation of the treasury surplus or compliance with final judgments; to cover long-term loans arranged to finance investments; for the refinancing of long-term credit operations arranged in advance; for the early cancellation of fractional debts with the State Security or the Tax Agency; to meet temporary treasury needs and, finally, for the conversion of short-term debt into long-term credit operations.
Villalobos has stated that in addition to “new features” such as the sixth and new line of advances, another of the “innovations” of the new edition of the FEAR is that in addition to being available to local councils and autonomous local entities (ELA), it opens its fan to the mancomunidades and consortiums that have an agreement signed with the Opaef. “We have expanded the object and scope of this instrument,” he said, noting that these reimbursable advances are a tool for “savings” for municipalities, which have the liquidity offered by the council are not forced to arrange loans with their corresponding interests.
In this regard, it has abounded that after this instrument was born back in 2007, the County Council has made available to municipalities more than 208 million euros in advance payments, motivating a “financial savings” in the set of Seville consistories, above 26.45 million euros.
“The FEAR is an essential tool and has been decisive for the economic improvement of the town halls”, Villalobos has defended, noting especially the role of this fund in the hardest years of the crisis, in which not a few consistories suffered real situations of economic “suffocation”
Thus, the president of the County Council has said that with the upcoming approval of the bases of the new call, the provincial institution will again “in charge” these refundable advances for the set of municipalities in Seville.