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Municipalities Pay – John Otis

Municipalities Pay

One of the major problems in the current economic situation in Spain is the non-payment of the invoices by public institutions, mainly from councils and the autonomous communities. Not all have the same debt nor the same habit of not paying, but it is unfortunately common that payment has not received companies who have worked for a town hall for his work. Those who suffer non-payment of the invoices are usually small and medium-sized companies that suffer by failing to receive their part, up to the point of having that, on several occasions, take the closure. And more now that the banks have closed the tap of the financing. Put us in a situation. One SME anyone who has made an economic important effort to carry out a work contracted by a particular city. For performing this work solicited a loan with the intention of paying it when you received the amount quoted on the invoice. However time passes and the cabildo do not pay.

Not arise new jobs or those that do need investment. But the company is ahogada paying the loan or simply doesn’t have more money to invest until it receives the money owed him. If this situation extends likely finally SMEs may need to close. We have presented a very black picture but it is unfortunately quite common. While the politicians come out saying the important thing is to pay the invoices because it depends on maintaining good part of industrial fabric, in addition to the myriad of families who depend on these companies to live, despite that we say, late payment of public institutions is very worrying. And although we hope that the situation will eventually reverse, the change is happening painfully slow.