The loans, amounting to 12.8 million €, correspond to 3.095 invoices recorded by the City Hall of Sitges, the Tourism Promotion Agency and "Societat Sitges Model XXI". The loan will be returned in 10 years with an interest rate of 5.9%. Such a rate will be applied during the first quarter and will be revised afterwards. Last week, the Municipal House approved the arrangement of the loan, a crucial step for signing the loan with different banks.
Since we gained access to municipal government a year ago, payment to suppliers has been a number one priority in our financial management policy. In this context, we included our first urgent measure in which we ordered payment of invoices below 1,500 Euros, corresponding mainly to small and independent businesses located in Sitges. According to the same principle, we are adopting a policy of budgetary constraints and reduced spending, which only authorizes the procurement of services and investments that have their corresponding budget allocation.
The above mentioned operations constitute a source of reflection for the current government, that wants to prevent the recurrence of situations like those recorded in recent years. The former government spent money they did not have, and had no qualms about increasing credit ad infinitum. The new political culture based on austerity in public spending is quite tough for people; they witness how services and benefits are reduced or suppressed. It is also quite tough for the municipal government, since their field of action is more limited. However, the positive lesson that we learned from such situations is that a general policy based on severe budgetary constraints is the best warranty to insure that resources are used in a responsible manner. Suppliers and citizens at large can rest reassured of our commitment.
