Regulatory Alerts2017-07-04
Royal Decree-Law 7/2012 of 9 March creating the Fund for the Financing of Payments to Suppliers
The Spanish State established the Fund for the Financing of Payments to Suppliers to provide emergency liquidity for local entities and Autonomous Communities to settle outstanding debts with their suppliers. This mechanism is secured by state guarantees and enforced through mandatory fiscal discipline, including the retention of state tax revenues from local entities and strict monitoring of their adjustment plans. The fund operates under a specific legal regime with a ten-year repayment horizon to ensure the sustainability of the debt operations.
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