The document formalizing the exit of the municipality in the Faro district from the financial equalization plan was signed by the mayor of PortimãoÁlvaro Bila, and the director of the Municipal Support Fund (FAM), Miguel Almeida.
“This is an important date for the citizens of Portimão, which shows the exemplary implementation of the financial equalization program: the repayment of old debts and the exit from over-indebtedness,” the mayor told the Lusa agency.
In 2016, the Municipality of Portimão, which had the largest national municipal debt with a total value of more than 142 million euros (ME), took advantage of the financial assistance program and received a loan of up to 142,520,995.69 euros with a payment term of 27 years . As part of the financial rescue, the municipality was forced to maintain taxes and duties at a higher level, restructure services, renegotiate debts and also limit public investments.
According to Álvaro Bila, of the funds made available under the program, “118 million euros have been used, with the municipality currently having a structured and consolidated debt of 82 million euros, which will be paid with the loan taken out by the FAM for a term of 27 years “, which has now run for 19 years. “It is a contractual loan that allows us to effectively manage the debt and make the necessary investments for the development of the community,” he stressed.
According to the mayor, balancing the municipal accounts was “a hard piece of work and has enabled debt repayment of 4 million euros per year over the last eight years”, so that the priority investments in the areas of infrastructure, social affairs and housing can be pushed forward.
“From now on, and without the restrictions imposed by the PAM, we have the autonomy and scope to reduce municipal taxes and, with responsible management, promote the investments that the municipality so urgently needs,” concluded Álvaro Bila.
