The Court of Auditors has allowed Albufeira council access to funding under the Programme to Support the Local Economy - PAEL.
The funds will be made available in 3 installments up to a total of €16,678,725 with the first tranche amounting to 60% of the total.
The second tranche of 20% can be received after the submission of documents and the proof of full payment of debts form tranche number one.
According to the council its total debts at the end of 2011, when its finances were subject to the fiscally myopic oversight of the then mayor Desiderio Silva, were approximately €65 million which has reduced by €15 million to around €50 million as at the end of September 2013.
The mayor is happy, "This situation was only possible to achieve through a policy of extreme budgetary stringency, and a rational and correct balancing of available resources to essential needs."
José Carlos Rolo said that when the money arrives the council will pay off overdue invoices in date order, all 1,374 of them.
Albufeira council applied originally for €25 million under the PAEL scheme, but as its debts have fallen, less was needed. The mayor considers this "very positive for the municipality," and indeed it seems to be so.
"We have moved from a situation of financial rescue to a less onerous state, which is financial restructuring," said Rollo.
Rollo now needs to sort out the council’s bank loans as Albufeira owes €7,462,484 to Caixa Geral, Crédito Agrícola and BES.
