Montero urges the Board to choose among the Fund's Liquidity Autonomous or markets

"Andalucia not you can combine the financing through the Financing Fund for Autonomous Communities with the capture of resources in the market," says the lett

Montero urges the Board to choose among the Fund's Liquidity Autonomous or markets

"Andalucia not you can combine the financing through the Financing Fund for Autonomous Communities with the capture of resources in the market," says the letter, which the Finance minister on functions, María Jesús Montero, has responded to the counselor of the branch, Juan Bravo, who sought to combine both routes in the region.

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In the text, he was grateful to the counselor who in his writing has not made allusion to the "intervention" of the regional government of Andalusia on the part of the Government of Spain, something that the regional Government of the PP and Citizens it takes two weeks berating Peter Sanchez, alluding to an "audit of the accounts of the community, which would lead to a significant reduction in social spending". Montero has been recalled in his letter that such claims are "utterly disproportionate, far away from reality and devoid of justification." "There is No precedent for a community under the Liquidity facility in Autonomous communities (FLA) has requested leave to the markets", has settled the Finance minister.

So, insists to Juan Bravo in that the adhesion to the FLA and the acceptance of the fiscal conditions and financial, that are derived from this mechanism is "voluntary". "Some communities, in the free exercise of their autonomy, have renounced the extraordinary mechanisms to be financed by themselves with recourse only to the financial markets", has written to the minister. This is the case of Castilla y León, after breaching the deficit target, which meant the entrance to the FLA, "opted to leave this mechanism in extraordinary and fully funded in the markets." "An option that also applies to Andalusia and the rest of communities that could be found in a similar situation, and that is in the hands of the political will of the regional governments," says the communication.

"Andalusia is not bugged, you can leave the extraordinary mechanisms of liquidity and leave to the markets, if it so decides, in the exercise of their autonomy", wrote Montero, and has asked the director of Finance to "straighten out" the claims made about it.

"Andalucia may decide to leave the Funding to Autonomous Communities and to continue to fund all of their debt in the financial markets", has clarified Montero and has been pointed out that his ministry supports the gradual departure to the financial markets on the part of communities, although it has warned that its "essential duty" is to ensure the fulfilment of the principles of budgetary stability and financial sustainability.

You letter reminds the counselor in andalusia to be the first report on the extent of compliance with the budgetary stability target, public debt and expenditure rule of the past may reflect that the community "did not comply with the objective of public debt" and, therefore, "it ought to be the compartment of the FLA".

According to the minister, "the only way" in that Andalusia could return to the compartment of Financial Facility would be "the fulfillment of the objectives of deficit and debt in 2019, the best way to continue moving forward in the sustainability of the public accounts".

Updated Date: 26 December 2019, 20:00

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