Ministry of Finances: These are the effects of paying debts to businesses

15/06/2015 00:00

Some media outlets have written recently that the payment of the debt
that the government had accumulated to businesses which carried out
public works, have not given the right effects for the country’s economy
and that it has been done selectively. The Ministry of Finances lists a
series of factors to answer to these articles.

1: Companies have paid the debt they had created with unpaid salaries of workers and subcontractors.

2: Some of the funds were used by businesses to pay fiscal obligations they had to the customs and tax administration, a condition set with the respective strategy.

3: A considerable part of these funds are used by businesses to pay loans from second level banks. This helps the prevention of bad loans and their reduction.

4: By the end of 2014, the deposits in trade banks was 44 billion ALL, in which business deposits had 24 billion ALL than on year ago,

5: Businesses valued positively the welfare of this process by influencing the increased credibility of businesses.

As for the selective payment, the Ministry says that they have respected the strategy of the government as proven by two audits of foreign companies, started in July 2014 and realized by Ernst & Young, in which was audited the VAT reimbursement process.

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