THE AMOUNT that Lisbon Câmara owes to its suppliers stands at nearly 500 million euros, according to its President António Costa.
But the Câmara’s total accumulated debt could be between 860 million euros and one billion euros if preliminary accounts are anything to go by.
The state of the city’s municipal finances was presented by Câmara accountants last week.
In November the Câmara is to move forward with a massive 450 million Euros bridging loan to pay off interest and suppliers, who in some cases have not been paid for up to two or more years.
The Câmara’s Financial Officer, Cardoso da Silva, guaranteed last week that most suppliers should be paid up to date by February.
That sum also includes debts drummed up by Câmara companies and protocol agreements with Lisbon parishes or Juntas de Freguesias.
The manner in which debt is to be scheduled and managed largely depends on the PSD Social Democrat majority sitting on the Câmara’s General Assembly which is expected to approve the emergency Debt Clearance Plan (Plano de Saneamento) on December 11.
However, the Câmara must then submit its detailed plans on how it will pay off its debts to the Tribunal de Contas (Exchequer Audit Commission) which will either agree with the plan or reject it.
The Câmara is also expected to generate operational funds and funds to clear debts by selling off and renting out municipal owned land and buildings.
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