“The destiny of Portimão is in our hands again,” says mayor Álvaro Bila
Portimão has officially exited its Municipal Adjustment Plan (Plano de Ajustamento Municipal), a financial assistance programme created in 2016 and originally set for a 27-year span.
On Monday (October 28), local leaders and officials gathered at Portimão’s town hall to sign the document that gives the municipality its financial independence back.
“The destiny of this municipality that we all love is in our hands again,” Portimão mayor, Álvaro Bila, said at the event.
The sentiment was shared by Miguel Almeida, president of the executive board of the Municipal Support Fund (FAM). “There was never the intention to impose a programme, as everything was negotiated and shared with the council team, which was with us always, especially during its execution,” he said.
Almeida stressed that there was “a great commitment from the entire municipal structure, which responded in the best way, making Portimão an example in the way it executed its financial assistance programme, given that it had the largest municipal council debt at the start of the programme, having quickly emerged from that situation due precisely to its commitment.”
“We cannot forget that this programme was supposed to last 27 years, and the fact that we are here today says a lot about the effort carried out and the firm way that the process was handled,” said Almeida.
Reflecting on the arduous road to financial recovery, mayor Bila acknowledged the sacrifices made. “Getting here took a lot of sacrifice and dedication from everyone who believed this day would come,” he stated.
He also highlighted the role played by his predecessor, Isilda Gomes (now a European MP), whom he described as the main figure in the municipality’s financial recovery. “(Isilda) created a strong team, which believed in Portimão’s future, and rolled up its sleeves to inspire others to believe in a solution for the municipality.”
Portimão’s financial challenges in 2016 included an inability to pay suppliers and a severely impaired credit reputation, which required a rigorous plan of cost control, service restructuring, and debt renegotiation. The toll was felt by residents, who bore the effects of austerity measures, which limited the investments and actions that the local council could carry out.
But with those tough times now in the borough’s rearview mirror, Bila believes that “today, we can say proudly that we did, and that today is a day to celebrate leaving behind the moments of tension and anguish, while also recognising the hard work and determination of everyone who made this moment possible.”
Looking to the future, Bila pledged to manage the council’s finances responsible, “always honouring the word that has been given.” He also announces plans for further municipal tax reductions in 2025.
Portimão’s journey from Portugal’s most indebted municipality to fiscal independence required only eight years of the planned 27-year period. The original agreement granted a €142.5 million loan to settle the municipality’s substantial debts, a goal the city has achieved nearly two decades ahead of expectations.
“Milestone that I will never forget”
Isilda Gomes, who took office as mayor of Portimão in 2013 – a position she held until leaving to become a European MP in Brussels in June – took to social media to describe the moment as one of the highlights of her political career.
“This has been a long and challenging journey, one that began in 2016, during my first term at the helm of Portimão. When I first took office as mayor in 2013, everyone knew the dire state of our municipal finances. Negotiating our entry into the FAM was a complex and arduous process, but with the collaboration of FAM’s executive committee, we secured the support needed to sustain the significant financial restructuring effort we were already undertaking on our own.”
Gomes described the last eight years as “incredibly tough” and said that “we only overcame the challenges through deep, dedicated teamwork that enhanced our resilience and allowed us to transform our problems into a collective strength.”
The former mayor also thanked everyone who worked alongside her to reach this outcome and declared that Portimão and its residents “have a reason to celebrate.”
“For me, despite the emotions of this day, I feel that I have fulfilled my duty and my commitment to the people of Portimão. I can honestly say that this has been a milestone in my political life that I will never forget.”
