Portimão council could reach breaking point if it does not urgently receive €134 million, Portimão mayoress Isilda Gomes admitted last week.
In an interview with Antena 1 radio station, the plain-speaking politician revealed that the municipal authority is completely broke, devoid of money for any kind of investment and unable to pay off its debts and loans, or even any interest due.
The municipality owes approximately €100 million to its main suppliers alone – and things could rapidly spiral downwards.
“I fear that the situation may become very complicated if it is not fixed soon,” were Gomes’ exact words.
Portimão is just one of as many as 30 municipalities floundering in the red and in dire need of financial rescue, president of the national association of Portuguese municipalities Manuel Machado said last week.
Funds promised by the government under its “Fundo de Apoio Municipal” (Municipal Support Fund) are expected to come through by the end of February.
According to Manuel Machado, they cannot arrive a moment too soon. “These situations tend to worsen by the minute,” he admitted.
