Brava: Francisco Tavares guarantees that the loan of 120 million escudos “will not suffocate” the municipality's treasury

Francisco Tavares gave this guarantee in statements to the press when reacting to the communiqué of the Regional Political Commission (CPR) of the PAICV of Brava, which considered that the bank loan that the Municipality of Brava will request from the bank will dictate the “death of the management of the County".

As the mayor explained, this is a strategy of renegotiating the debt that the municipality already had with BCA and with an addition of an additional loan of 42 million escudos.

And of the value of the debt that the municipality has with the BCA in the amount of 754 thousand escudos per month, Francisco Tavares highlighted that when the debt becomes 120 million escudos, the municipality will have a charge of only 808 thousand escudos monthly, that is to say aggravation of expenses with the debt will be only 54 contos so that the municipality has a further 42 thousand contos available.

“It's work. It's not easy. Maybe that's why the CPR leader didn't understand what's going on around it and the explanation is simple", considered the mayor, explaining that it is the renegotiation of the current debt that causes the monthly fees with the bank, which at the moment is from 754 thousand escudos, down to 525 monthly contos.

As for the 42 thousand contos that will remain with the municipality, the mayor has shown that it will be used for various actions and one of them is the total settlement of debts with local suppliers and contractors and the council will also have 20 thousand contos to make new investments, namely, the construction of the sports plaque in the locality of Palhal, an age-old claim.

The mayor accused the PAICV of making an “escape” ahead so that the population of Lomba, Palhal and Ferreiros would not crucify him for voting against the loan.

"The town hall is completely calm and the entire population of Brava, the future management of the town hall can be calm", he said, justifying that to make these types of loans it is necessary a statement from an accredited independent entity in the area of financial management that makes an analysis of what is the municipal financial management in the last three years and issues a declaration of debt capacity.

According to the same source, this statement points out that at the moment, the total borrowing capacity of the municipality is 298 thousand contos and that with the loan of 120 thousand contos, the municipality still reaches only 40 percent (%) of its total debt capacity, based on studies by specialists of what is the municipal financial management of the last three years, that is, the flow of revenues and expenses in the last three years, which "will not make any kind of commitment to municipal management in the near future ”.

“The PAICV CPR statement demonstrates that the PAICV is not prepared to manage absolutely anything in Brava, as in their words they say that they do not have the slightest notion of what municipal management is”, accused the mayor, advising the opposition team to “think carefully whether to present a candidacy next year or not”.

Likewise, he accused the PAICV CPR of not being aware of what is happening at a national level, advancing that last week, in Parliament, the possibility of increasing the Municipal Financing Fund from 10 to 13% in 2024 .

Finally, he announced that with the increase in the Municipal Financing Fund of the city council, next year the autarchy will proceed with a new bank loan for the construction of a football field in the parish of Nossa Senhora do Monte, which could be a loan of around 50 to 60 million escudos, but which has already seen that the current debt capacity