After the plan to pay back service providers that was put into effect in 2012, the Ministry of Finance has started to work on a tool that will allow service providers to circumvent defaulting regional administrations and have their debts paid directly from the national government.
This is an effective solution that will trim 13.7 billion euros in in back payments to service providers that have accumulated since October. Along with the start of the Ley de Morosidad, a Spanish loan default regulation that mandates all public administrations to pay their service debts within thirty days, ought to do away with deferred payments. Unfortunately, hundreds of companies shut down before this solution was developed.
