Portimão council is to pay off the smaller of its long-suffering creditors as Isilda Gomes pledges to clear a swathe of small debts.
The most indebted council in the Algarve and one of the worst in the country, Portimão has lined up 479 of its smaller creditors for a surprise result.
The announcement was made at the Portimão Municipal Assembley last night by mayor Isilda Gomes, who added that the allotted €3.6 million will "clear all debts below €50,000."
Portimão owes €140 million at the last count, much of it to banks and larger creditors who can afford the years of delays before being paid.
The mayor’s reasoning for her sudden largesse is that hundreds of lesser amounts are owed to smaller business which may go bust if made to wait any longer, in fact many already have.
"For us it is extremely important to be able to pay off these debts, because it is a lot of money and it will give a boost to the local economy," stressed Isilda Gomes, speaking to Sul Informaçao.
"It's about time. Lenders have had a lot of patience to endure for so long. I am very grateful for that patience and apologise for the delay," said Gomes who took control of the insolvent council 18 months ago and has struggled since to contain spending, pay off debt, access new funds or to make sense of the corrupt mess left by the fiscally incontinent former mayor Manuel da Luz aspects of which still are being investigated by prosecutors.
