Return to the markets and the debt problem

pauljoy1548

[i=s] 本帖最后由 pauljoy1548 于 2023-12-17 11:25 编辑 [/i]


The debt accumulated by the communities was one of the problems that generated the greatest disagreement within the commission. “It was a long and intense debate”, recognizes Francisco Pérez. Although the commission considers it necessary to put an end to the extraordinary financing mechanisms, so that the Autonomous Communities return to a normal situation, where the market meets its liquidity needs, it recognizes the difficulty that this entails, given the volume of accumulated debt by many communities and, in particular, by some like Valencia.

For this reason, the commission agrees on the need to address a debt restructuring, to ensure that the [b][url=https://dbtodata.com/email-data/]Email Data[/url][/b] obligations contracted can be met in a realistic and viable manner. “An instrument to achieve this can be to lengthen the return periods and even introduce deficiencies; another, shorten interest rates or even cancel them; and a third, establish reductions or condonations.”

In this sense, the majority of members of the commission considered that in no case were reductions or condonations advisable, as they generated a problem of moral risk; that is: "If a debt you have incurred is forgiven, you will consider that you can continue incurring new debts for which others will account."

However, faced with this position, some members, led by the Valencian delegation - hence the dissenting vote that Fco. Pérez-, object for two reasons: “Without condonations, for some communities the return to the market is not a realistic scenario because, even if rates are lowered and terms are lengthened, the volume of debt is such that a return to the market is not feasible,” says Pérez.

Secondly, "do not talk to me about moral risk, without analyzing the causes of my debt". In the case of the Comunitat, the data show that this “does not occur by spending more, but despite making adjustments and spending less; Therefore, it is not a moral risk behavior, but a problem of low income”, defends Pérez.

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For this reason, Francisco Pérez, as representative of the Valencian position, has recorded in the document the argumentative force of his private vote.

"There are communities that are singled out for having met the deficit worse and having resorted more than others to extraordinary financing funds or for having reduced their expenses less. However, all this happens at the same time that they continue to spend less than others per inhabitant or per unit of need, so that it can be said that they are permanently making more effort than others, and not less, and by not pointing this out, it is ignores that these communities have fewer resources”.

Precisely because of the forcefulness of his argument, Pérez understands that "there is no reason to assume that the majority opinion is the one that has the best chance of moving forward" in a reform in which work must continue.