The Generalitat has achieved reduce the average period of payment to suppliers (PMP) a 21.7 days during the month of June, a figure that stands as “the lowest since this indicator began to be counted in January 2015.”
The counselor of Hacienda and Economic Model, Vicent Soler, together with the regional finance secretary, Francesc Gamero, has made this announcement after knowing the data, which will be made public shortly by the Ministry of Finance.
“Since August 2020 we have been paying suppliers for less than 30 days, which is the legal limit established by the Organic Law of Budgetary Stability. This allowed us at the beginning of the year to stop being under the control of the central government, which had established an exhaustive monitoring of our treasury management to reduce our commercial debt “, declares the Minister of Finance.
Soler stressed that this trend of reducing the average payment period “is being consolidated thanks to the extraordinary funds that the Valencian Community is receiving from the central government to face the pandemic, but this is not enough for us.”
“We want a new financing system that guarantees us the financial sufficiency necessary to meet our expenses and we want it now.” “The Valencian Community cannot wait any longer,” said Soler.
“Our desire is to pay in a timely manner to the thousands of suppliers with whom the Generalitat works, because we know that many freelancers, many jobs and, therefore, many families depend on these companies,” said the Minister of Finance .
The PMP for June 2021 stood at 21.7 days, below the figure recorded the previous month (26.6 days) and the result for June 2020 (37.9 days). Soler recalled that this indicator reached 99 days in March 2015, “during the management of the previous Consell”, which according to the minister means “that since then we have reduced the PMP to a quarter”.
Optimization of Treasury management
For his part, the Regional Secretary of Finance, Francesc Gamero, and head of the Generalitat Treasury has indicated the PMP figure “is the result of a continuous effort to streamline and increase the efficiency of all the processes of the Treasury of the Generalitat in coordination with the economic services of the regional ministries, trying to control and optimize procedures and prioritizing payments in social areas, “said Francesc Gamero.
“Our part is done, because with the worst financing we carry out one of the best economic managements. Now we have to get a financing system that gives us sufficient resources so that we can meet our payment obligations, guarantee fundamental public services and carry out the economic policies necessary to get out of the crisis by transforming our economic model, under equal conditions to other autonomies. And we cannot wait any longer to achieve it, “said Gamero.
Gamero recalled that the Valencian Community “is the first autonomy that has managed to regain the path of commercial sustainability by its own means, thanks to the management of our treasury. In our case it has not been necessary for the Government to have had that to resort to an effective intervention of the accounts to take charge of the payment to providers, as it has happened in other autonomies “.
“It has been shown that unlike what happened with the previous government, the Generalitat is no longer a problem for Valencian citizens and companies, but the solution to inherited problems, such as late payment to suppliers,” he said. appointed the regional secretary.
Eddie is an Australian news reporter with over 9 years in the industry and has published on Forbes and tech crunch.