Government gets serious about paying the little businessman

…or businesswoman, of course.

I mentioned a few days ago that the Almeria chamber of commerce has filed a complaint with the public prosecutor about its members not being paid by townhalls. It estimated that at least 3,000 jobs in Almería alone have been destroyed over the last three years due to companies going bust because of outstanding debts with townhalls.

Madrid has announced that the ICO, the official state credit union, will have a new reserve fund of 3,400 million euros, available “at once”, to pay small companies and autonomos their outstanding invoices.

All the “Pyme” has to do is, once a bill has become outstanding, is send it along to the ICO and they will write him a  cheque.

The money will then be deducted from future state payments to that townhall, over a maximum of three years.

So yes, Madrid has admitted that the townhalls are bankrupt. At least some cash will start flowing again. 150 million euros owing in Almeria alone, according to the CCA.

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