Skip to Content

Spain Moves to Settle Debts to Small Companies

From Associated Press (February 24, 2012)

MADRID -- Spain's new conservative government wants to settle billions in debt that cash-strapped city councils owe to companies, many of them small- and medium-size ones that are the backbone of the troubled economy.

Deputy Prime Minister Soraya Saenz de Santa Maria said Friday the first step is an order for city halls to tell the government by March 15 how much they owe to suppliers like gardening companies or janitorial services.

Such companies _ and larger ones like pharmaceutical manufacturers _ say they are suffocating with unpaid bills as crisis-hit Spanish governments at all levels grapple with revenue shortfalls.

She gave few details but the blueprint is apparently aimed at having the central government arrange for debts to be paid, breathing life into the economy.

Posted: February 2012