Board will authorize indebtedness up to 150 million EPSA, up to 215 Metro Granada, and increases the volume to RTVA and Aopja

Authorize disposals of buildings to EPSA and RTVA for an amount exceeding 20 million
 

The Junta de Andalucía will authorize, through the Ministry of Finance and Public Administration, the establishment of indebtedness operations and long-term loans for the Public Land Company of Andalusia (EPSA) up to the limit of 150 million euros; up to 215.5 million for Metro de Granada SA, and RTVA or the Public Works Agency of the Board (Aopja), in both cases for a volume higher than the Annual Indebtedness Program agreed between the Board and the State.

As contemplated in its budget project of the Andalusian Community for 2013, consulted by Europa Press, the debt operations of the Andalusian public sector, for this next year will empower the Public Land Company of Andalusia (EPSA) to borrow with public or private financial entities up to the limit of 150 million euros for the fulfillment of their purposes, while the commercial company Metro de Granada SA will be empowered to arrange long-term debt operations up to the limit of 215.5 million euros. euros with the European Investment Bank and other public and private entities.

Likewise, during 2013 the Public Works Agency of the Junta de Andalucía and the Public Business Agency of Radio and Television of Andalusia (RTVA) will be authorized to formalize loans with public or private financial institutions for a volume of indebtedness “greater than that contemplated in the Annual Indebtedness Program agreed between the Board and the State for them, conditioned to the fact that at the close of each fiscal year the outstanding balance of the debt of each one of these entities does not exceed the limit set by the Treasury “.

Other agencies ,

Short-term credits and treasury

As for the rest of the agencies, such as the Public Ports of Andalusia Agency, the Costa del Sol Public Health Business Agency, the Public Health Business Agency of the Poniente de Almería Hospital, the Alto Guadalquivir Hospital Public Healthcare Agency, the Guadalquivir Public Health Enterprise Agency, Empresa Public Health Emergency, Agency of Innovation and Development of Andalusia, Andalusian Agency of Energy, Andalusian Agency of Cultural Institutions, Andalusian Agency for International Development Cooperation, Andalusian Institute of Historical Heritage, Andalusian Agency of Knowledge, Agency for Social Services and Dependency of Andalusia, Agency of Environment and Water of Andalusia and Andalusian Public Entity of Infrastructures and Educational Services, will be authorized to carry out credit operations for a period of less than one year, in order to “cover their transitory needs of treasury”.

In this case, the limit of the indebtedness due to operations of this nature “will be a maximum of 12 percent of the total of their operating budgets”.

In the case of special regime agencies, they are also authorized to carry out credit operations for a period of less than one year, in order to “cover their transitory cash requirements”. The limit of the indebtedness alive for operations of this nature will also be a maximum of 12 percent of their budgets.

The mercantile companies, the consortiums and the foundations of the Andalusian public sector “must request prior authorization from the person holding the Ministry of Finance and Public Administration to arrange debt operations”.

The draft budget provides that the maximum volume to be authorized by the Ministry of Finance and Public Administration for all these operations “will be within the limits of the Annual Indebtedness Program agreed between the Junta de Andalucía and the State”, although it notes that “exceptionally When there are reasons that justify it, during the year a volume of indebtedness higher than that contemplated in the program may be authorized, although at the end of the fiscal year, necessarily, the outstanding debt must be within said limits “.

They must send to the General Directorate of Treasury and Public Debt of the Ministry of Finance and Public Administration, on a quarterly basis, information regarding the situation of their indebtedness, the special regime agencies and the public business agencies of the Board, the mercantile companies of the Andalusian public sector, consortiums and foundations, commercial companies, foundations, consortiums, public universities.

 

Disposal of real estate or

Sale and leaseback

On the other hand, the budget project provides authorization to the Ministry of Finance for the direct transfer and for consideration of real estate, whatever its value, authorized by the Governing Council during the 2013 financial year.

Likewise, the instrumental entities of the Junta de Andalucía are authorized for the necessary indebtedness and, as the case may be, for the granting of guarantee by the Board for the acquisition of the aforementioned properties. “

It authorizes the conclusion of leases of up to 35 years by the Ministry responsible for the Treasury for the use, by the various ministries and entities of public law linked or dependent, of the alienated property.

Likewise, an authorization is expressly established for the direct transfer and for consideration of real estate assets of the Autonomous Community of Andalusia, for an amount exceeding 20 million euros, to EPSA, for the fulfillment of its purposes.

It also authorizes the Public Enterprise Agency of Radio and Television of Andalusia (RTVA) for the direct sale for consideration of real estate of ownership for an amount exceeding 20 million euros, as well as for the transfer of shares for a higher amount to 15 million euros.

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The Government plans to create a 'bad bank' to clean up the bank, after months denying it

  • De Guindos: "The rescue will not be linked to more macroeconomic adjustments"
  • The FROB will act as an "intermediary" of the banking assistance.
  • The entities that request the rescue will have to segregate their toxic assets.
  • The minister will appear before the end of July to explain the details.
  • The PSOE: "Nobody understands Rajoy when he talks about crisis, the euro" …

After months of denying the possibility, the Government described Tuesday as an "interesting alternative" the creation of the so-called "bad bank" . With this option, in theory, the entities intervened or that receive assistance from the FROB – which will manage the rescue of up to 100,000 million requested to the EU on Monday – will be able to transfer their impaired assets to an external instrument, thereby reorganizing their balance sheets.

The plan is negotiated these days between Spain and the EU. The idea of ​​the Minister of Economy, Luis De Guindos would go through the use of the bailout to buy toxic assets to the banks in exchange for a credible restructuring plan. And is that the markets distrust the Spanish financial system, as demonstrated yesterday by the rating agency Moody's, which lowered its rating massively.

De Guindos plans to use the bailout to buy toxic assets from banks . What are the risks that investors see? The main ones, " a monstrous exposure to the construction sector , the loans granted to companies that in turn have a lot of land and an incipient bubble of sovereign debt," says Daniel Lacalle, fund manager in London.

In his opinion, the solution can not be done with hot packs or in the short term, and he is committed to opening the sector to both European and foreign investors . Another banking news spoke of mergers: the shareholders of Banca Cívica (Cajasol, Caja Navarra, Caja Burgos and Caja Canarias) approved yesterday in an extraordinary meeting their merger by absorption with Caixabank, whose board also gave the green light to the operation yesterday.

De Guindos, in Congress

Minister De Guindos assured that the aid to the bank "will not be linked to a program of macroeconomic adjustments , nor will new fiscal measures be imposed", although he has acknowledged that our country will continue taking measures to fulfill its commitments due to its excessive deficit.

De Guindos has appeared on the Economy Committee of the Congress at his own request, to explain the rescue of the bank, requested after the official request made by the Executive on Monday.

The funds will be from the European Rescue Fund or the permanent mechanism that is not yet in force. The minister explained that the FROB will act as an "intermediary" for this assistance to Spanish banks, and that Spain will guarantee the return of the rescue. What remains to be clarified by the Government is where the European funds will come from: "The funds will be contributed by the European Rescue Fund or by the permanent mechanism that is not yet in force." We must remember that the Spanish Executive has fought for the rescue to go directly from the European institutions to the banks, to avoid weighing on the national debt.

De Guindos also stressed that this plan has had the solid and unanimous support of the European Union and the International Monetary Fund (IMF), which although not participate in the loan, has been called to evaluate the process, "what provides security and transparency ", according to the minister.

The main voice of the Executive in economic matters has also referred to the external audits carried out on the Spanish financial sector, which were presented last Thursday. For De Guindos, these reports prove that the sector is "healthy" and that the problems are concentrated in a small group of entities, which have already been helped or intervened by the FROB.

We must remember that these reports, made by the firms Oliver Wyman and Roland Berger, established a fork of between 51,000 and 62,000 million the needs of Spanish banks. The Spanish government requested aid whose amount should be based on these reports, plus a margin in case the conditions were worse than expected.

De Guindos has promised to return to Congress before the end of July The Minister of Economy has "committed" to reappear in Congress to explain all the details of the rescue of the banking that are in the air, "before the end of July".

On the upcoming EU summit, which everyone expects will be a turning point in the management of the crisis in the euro zone, De Guindos has assured that "we are playing a very important part of the future of the euro."

The fault is Zapatero

The minister has also returned to bear the blame for the economic situation of the country and the Spanish financial sector to the performance of the former executive, chaired by José Luis Rodríguez Zapatero.

According to De Guindos, because the government came to power and found that in the past there were "very serious errors that are now being corrected so that they do not happen again."

There were very serious mistakes that are now being corrected De Guindos recalled that from 2003 to 2009, the credit in Spain went from 800,000 million to 1,85 billion, that is, it grew much faster than the economy.

But in addition, the same happened with the credits for real estate development, from 78,000 million to 325,000 million; or with dependence on external financing.

In the last eight years, Spain's external net debt has almost quintupled and there has been an accelerated growth of credit that has generated an unprecedented bubble with money from abroad, de Guindos has criticized.

For that reason, in his opinion, in the future it will be necessary to redouble attention and control the "excessive" growth of credit , the formation of bubbles or the high dependence of the entities on external financing.

"A way of the cross"

For his part, the spokesman in the commission of the PSOE, Valeriano Gómez has responded to De Guindos that this proposal "is late" and has asked, again, that President Mariano Rajoy explain these measures in Congress. "The president's playing field is the Congress", assured Gómez.

Gomez has shared the situation in Spain with a "via crucis" that is too long "to maintain the political, economic and social integrity of this country."

The socialist spokesman has criticized the erratic communication policy of the Government. " Nobody understands Mr. Rajoy when he talks about the crisis of the Euro , of Europe or of the aid to the bank, neither you, nor we, nor the Spaniards, nor our European partners", has attacked Gómez.

The former Minister of Labor blamed the government that when requesting the audits of banks from foreign companies, they had sunk the image of the Bank of Spain (BCE). De Guindos has responded that this executive and this minister "have never undermined the presidency and solvency of the ECB , we believe it is a fundamental institution".

All the political groups have regretted that the minister's appearance came two weeks after having agreed with the European partners to rescue the bank.

  • Luis De Guindos

    The Spanish Minister of Economy, Luis de Guindos, speaks to the press in Los Cabos, Mexico. (ALEJANDRO BOLÍVAR / EFE)

    "> Luis De Guindos

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Baleares has 398 million euros pending payment and a treasury availability of 150 million

Baleares has 398 million euros pending payment and a treasury availability of 150 million

Marí: "Today we are a little better than in 2011 but we have to continue working"

Baleares has, as of May 31, 2015, a total of 398 million euros pending payment "compared to 1,561 million euros in 2011", as revealed this Wednesday by the acting Minister of Finance and Budgets, José Vicente Marí, who, on the other hand, has indicated that, covered this June, the treasury availability of the Islands will be 150.1 million euros.

"The results allow us to say that today we are a little better than in 2011," said Marí, who, however, added that Baleares is not in a situation of "fireworks", so we must continue working. "We have gone from a negative evolution of income to a positive evolution of the income of the community," he added.

Specifically, of the 398 million euros pending payment, the councilor has detailed that 169.1 million correspond to the Consells Insulars -144 million of them advances; 19.6 million euros to other institutions; 21.6 million to suppliers and other creditors in the community; 144.3 million to suppliers and other creditors of IbSalut and 22.1 million to suppliers of public companies. However, he added that many of these amounts correspond to the monthly payments in progress.

Regarding the balance of 150.1 million expected cash availability to June of this year, Marí has ​​indicated that at 31 May the balance was 191.4 million, but that, between the income and expected payments, the figure was it will be 150.1 million.

Meanwhile, SEC and non-SEC debt, as of May 30, is expected to be 8,434 million euros, including the Tax Agency policy and the 350 million euros arranged by the general administration and SEC entities.

This indebtedness -SEC and not SEC- corresponds to 54.5% to the State, 5.9% in the short term, 31.6% to loans and 8% to emissions.

"the indebtedness ,

The main imbalance "

"Indebtedness is the main imbalance in the public accounts of the Balearic Islands," said Marí, who has specified that this has increased by 60% during this term because "we had to incorporate 1,600 million of commercial debt and has become financial" . "The new indebtedness of the Balearic Islands corresponds to the deficits that the community has incurred each year, while liquidating budgets with deficit indebtedness will continue," he explained.

Regarding the average payment period, this is 54.18 days for the regional administration, since in health it reaches 71.02 days, in education at 17.5, in social services it is paid per day (-1, 19) and at 15.53 in the rest.

Marí pointed out that an adjustment has been made in spending of 617 million euros, an increase in revenues of 236 million euros and that the public deficit has been reduced by 853 million euros.

Forecast of growth superior to 3%

The economic growth rate was 1.9% in 2014 and the forecast for 2015 is to exceed 3%. For this reason, it has considered that "a path of fiscal consolidation and reforms has been made that, far from deepening the revision, has returned the community to economic growth and the generation of employment".

In addition, he pointed out that it has gone from a debt needs of around 1,000 or 1,300 million to a range of between 350 and 450 million euros. Accompanied by the general directors of Budgets and Financing and the Treasury, Financial Policy and Patrimony, Antoni Costa and Miquel Miralles, Marí has ​​said that reducing that deficit "only leads us to maintain ourselves, which means being the last ones in spending on education and health "

On tax revenues, has admitted that is not yet at levels "pre-crisis" on the taxes managed by the community.

In this sense, the acting conseller has stated that the increase in revenue in 2014 compared to the previous year was 17.01% and that for 2015 they have "prudently" foreseen a rise of 4.32%. However, the variation of 2014-2015 in May is already 14.52%, so the increase is expected to be "much higher" than the 4.32% budgeted.

On the tax revenues derived from the financing system, it has highlighted the "step forward" that there was in 2009 "of the order of 300 million euros", as well as that "this legislature the revenues from the financing system have been over 2,000 million "

"Our obsession has been to look to make things and make decisions with sense, looking not to sell motorcycles, to accompany the effort of citizenship being faithful and being up to the effort, making complicated decisions and always thinking that benefited a lot more people, the results allow us to say that today we are a little better than in 2011, we have made a road, it is not the end of the road, the community must continue to make a road, "he said before highlighting the importance of modifying the system of regional financing.

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