MOODY’S, the international credit ratings organisation has downgraded Lisbon Câmara from an Aa2 to an Aa3 rating because of its huge debts.
According to Moody’s, in order to fulfil the Câmara’s five year financial plan, including paying off its accumulated debts, will mean tough new restructuring plans at the local municipal authority.
Moody’s added in its report that Lisbon Câmara’s debts, estimated at around several hundred million euros, is equal to 210 per cent of its total annual receipts.
In a recent interview to mark his first 100 days in office, Câmara President António Costa admitted that creditors were owed 500 million euros and promised to pay thousands of small and medium creditors back, each owed an average of 5,000 euros, by the end of the year.
Lisbon run companies such as EMEL are said to be in debt to the tune of 14.7 million euros while the Camara’s total accumulated debt officially stands at 832 million euros but unofficially could be as high as over 1.5 billion euros.
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