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The Government allocates 179 million euros to municipalities to cover their financial needs in 2024


The Executive, through the Government Delegate Commission for Economic Affairs (CDGAE), has approved an agreement that will involve the distribution in 2024 of 179.24 million euros through the Financing Fund for Local Entities. This amount is distributed between the Planning Fund (146.12 million) and Economic Impulse Fund (33.12 million) compartments. The Planning Fund provides liquidity to Local Entities with some type of financial risk, while the Economic Impulse Fund addresses the needs of those local administrations that are financially healthy. Specifically, the 146 million allocated to the Planning Fund compartment are distributed in 47.5 million to City Councils that are at financial risk and another 98.62 million to Town Councils that have not been able to be refinanced under conditions of financial prudence. On the other hand, the 33.12 million euros allocated to the Economic Impulse Fund compartment will serve to satisfy financial needs derived from the maturity of long-term loans with credit institutions that financed Financially Sustainable Investments (IFS); or execution of final judicial sentences. DISTRIBUTION BY CCAA Thus, the local entities of Andalusia will be the ones that take in the most money, with more than 99 million; They are followed by the Valencian Community with more than 26 million; Catalonia, with more than 18 million; Madrid, with more than 15 million; Murcia, with more than 11 million. Below are Castilla-La Mancha, which will receive more than seven million; Extremadura, with 706,958 euros; Castilla y León with 699,071 euros; Aragon, with 251,201 euros and, finally, the Balearic Islands with 96,459 euros. At the meeting of the Delegate Commission, the financial conditions of the credit operations that are formalized under the Management Fund and Economic Impulse Fund compartments have also been approved. These conditions are similar to those contained in the CDGAE Agreements adopted in 2023, although now a amortization period of 12 years is included, instead of ten, until March 31, 2036. In addition, the grace period is eliminated , which last year was established at two years.



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