Valladolid. 2/10/2021. Exterior of the Pimentel Palace PHOTO/MIGUEL ÁNGEL SANTOS.
Date: February 18, 2022
More than 1.5 million euros of these loans finance the municipal contribution to the works included in the 2020-2021 Cooperation Plan, the excesses of the projects, and the reinvestment of the award losses in new investments.
The Diputación de Valladolid will allocate 5,840,000 euros to the seven lines of credit opened in the Caja de Crédito Municipal to finance the loans that will facilitate the town councils, and where appropriate the Mancomunidades, to meet their contributions in different investments.
The Commission for Cooperation and Assistance to Municipalities will rule on the proposal for the new credit lines of the Municipal Fund for the year 2022, which will be approved in a forthcoming plenary session of the Provincial Council. The purpose of these lines of credit is to be able to meet the largest possible number of requests and therefore the unforeseen income due to the differences between concession, consolidation and interest on consolidation or late payment will be added to any of the approved lines, even if this exceeds the maximum approved amount.
The City Councils may request loans from the Provincial Council in any of the seven lines of credit that are approved for this year. The first of them, with a maximum amount of 590,000 euros, is the one that offers loans to municipalities to finance their contributions to the works included in the 2022-2023 Biennial Cooperation Plan. The advances can cover up to 100% of the contribution of the local entity to the Plan, with a financial expense of 0.1%, and will be returned within 13 years with a grace period in the first year.
The excesses of the projects over the amounts approved in the 2022-2023 Plans generate a second line of credit from the Municipal Fund endowed with 800,000 euros. Charged to this line, municipalities may request loans of up to 100% of the difference between the amounts approved in the Plan and those imported by the approved projects when the excess has been assumed solely by the local entity. In this case, the financial cost will be 0.1% and the amortization must be made within a maximum period of 13 years with a grace period.
When there are cancellations in the adjudication of the works of the Provincial Plans of this biennium, the Town Councils that decide to reuse them in new investments will be able to rely on a third line of credit, endowed with 200,000 euros, which can grant up to 100% of the contribution What should the local entity do? The financial cost is 0.1% and the amortization period is 13 years with the first grace period.
A fourth line of credit will help the municipalities to finance the investments they make outside the 2022-2023 Provincial Plans, as well as those made by the Mancomunidades. For this purpose, the Caja de Crédito allocates a total of 250,000 euros with a financial cost of 0.1% and 13 years of repayment, with 1 grace period. The maximum amount of each advance that is granted is 75,000 euros and they will never finance more than 80% of the value of the investment.
With the aim of facilitating access to financial resources for municipalities and associations to deal with real estate acquisitions, a fifth line of funding with 1 million euros has been set up, granting up to 200,000 euros with a maximum of 80% of the value of the property. The financial cost is 0.1% and the amortization period is 13 years with the first grace period.
On the other hand, to provide municipalities and associations with access to financial resources to deal with the acquisition of new trucks for selective collection of urban solid waste or other new vehicles for street cleaning, carrying out works and maintenance of infrastructures (for example: sweepers, backhoes, dumpers and the like), the Provincial Council launches a line endowed with 1 million euros. The maximum amount of the advances granted by a local entity for the acquisition of new trucks for the selective collection of urban solid waste will be 250,000 euros (with a maximum of 80% of the acquisition value for each vehicle) and, in the event of , a local entity for the acquisition of other new vehicles will be 75,000 (with a maximum of 80% of the acquisition value for each vehicle).
Lastly, the Diputación endows 2 million euros to a line to meet the transitory treasury needs of the municipalities that must face the subsidiary execution of their resolutions. Also in this case, advances can be requested up to 100% of the expenses generated in this subsidiary action of the City Council. This is the only line in which the loan has a financial expense of zero, and the repayment period is a maximum of one year.
