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Granada Town Hall owes 44.5 million Euros |
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Sunday, 15 March 2009 |
Over one thousand creditors are seeking payment from Granada Town Hall. The local government is clearly having financial problems (who isn’t?) and unable to resort to the usual public taxing methods for raising funds. The result is that there is a vicious circle in progress, as individuals and companies that have undertaken public works are also not getting their bills paid by the Granada authorities.
'Just a liquidity problem' claims Granada Town Hall
If smaller companies are not getting paid by the town hall, then these in turn are unable to meet their payment to suppliers, and even more crucially, staff. But the municipal government claims that theirs is not a debt problem, but a lack of liquidity. Spokesperson Juan Antonio Mérida complained that it wasn’t correct for Granada 's local government to assume responsibility for everything and that it should be central government (namely the Junta de Andalucía), which surely should lead the way in terms of sorting out their debt with the Granada capital (some 3.5 million Euros apparently).
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