Parla, Spain's 54th Largest City, Poised for Bankruptcy

Alarm bells and official denials about the state of affairs of Parla, Spain's 54th largest city, are ringing loud and clear today.

Courtesy of Google Translate from El Economista, please consider Parla, one step from bankruptcy: cannot deal with creditors.

The economic situation of the City of Parla "can not deal with creditors and maintain basic health services to citizens," according to the report of the Audit Chamber of the Community of Madrid, who advised to take measures to continuity of the consistory. However, the City of Parla has denied Monday that is on the verge of bankruptcy.

The report, which has had access, stated that the measures that have been launched this Madrid City Council, which governs the PSOE since the first democratic elections, "not enough" to pay "a debt so high."

In this regard, local authorities summons to articulate "some exceptional plan" to allow continuity of the consistory of the town, which is located at number 54 in population census nationally (130,000 inhabitants) and in ninth place in the Community of Madrid.

From City of Parla, the Councillor of Finance, Fernando Jiménez, has denied "categorically" that the City is "on the verge of bankruptcy" and insists that they have taken steps to improve the economic situation.

He admits that the city is going through "difficult times" as all the authorities of this country, but emphasizes that the management has been done and is done in this Consistory is "effective and flawless" proof of this, he adds, is that this city " goes on. "

This is clearly an open-and-shut case. Parla is bankrupt. Expect to see more of these situations because they are 100% certain to happen.

Mike "Mish" Shedlock
http://globaleconomicanalysis.blogspot.com