Loulé councillors unanimously approved a recommendation for the renegotiation of the Program to Support the Local Economy loan that the previous administration signed up for in 2012.
The proposal was approved by all sides after a document presented by socialist members pointed out the urgent need for some "deep reflection" on the loan conditions, particularly regarding the payment deadline, and the measures agreed on to increase council revenue and reduce its expenditure.
The executive is drawing up an alternative adjustment programme, "which supports a proposal to renegotiate the contract between the municipality and the government."
One of the main problem areas is the condition that requires the council to impose IMI rates of 0.8% and 0.4% respectively for properties that have yet to be re-rated and those that have been sent re-rating notices.
The loan that the council signed up for in 2012 is for €14.5 million over five years.
“This is a difficult time for the county and for the Portuguese, with the loan representing "a heavy burden" on local ratepayers.
