In addition, the minimum limit rises by which the creditor can adjudge itself or of present 50% to 60%, and the present possibility that is eliminated in certain cases the creditor could even adjudge itself or below those limits. In this way, the vice-president first of the Government, Alfredo explained Perez Rubalcaba after the Cabinet, is avoided that the prices of auctioned buildings " they fall and caigan" , with the consequent damage for the owner of the house, that will have money still more to the financial organization. Article 670 of the Law of Civil Judgment establishes that the awarding from the building to the best postor in an auction or to the financial organization could not be inferior with general character to 50% of the value of appraisal, unless the offered amount, still being smaller, serves to cover the demanded debt (including interests and coasts). Law of Budgetary Stability Also, the Cabinet has approved a Real Decree with which it modifies the Law of Budgetary Stability and determines a maximum top to the annual increase of the cost of the State and the local organizations bound to the evolution of the national GIP to the five previous years and the forecasts of evolution for the three following years. Of this form, the Government assumes the European commitment to determine a rule of evolution of the public cost that guarantees its entailment to the own evolution of the economy. In addition, the Government has also decided to propose an analogous initiative to the independent communities in the next meeting of the Fiscal Council of Policy and Financiera (CPFF), who will be celebrated at the end of the month of July. Aid of ICO On the other hand the vice-president first advanced that the Institute of Official Credit (ICO) will pay up to 3,400 million Euros the SMEs that have pending debts with the city councils, to that will discount the invoices that the organism of the income pays against the account that annually realises the State to the local corporations. The mechanism consists of which the suppliers of the public administrations, and especially SMEs of less than 250 workers, can receive from immediate way through ICO the payment of a very excellent part of the debts that with them maintain the organizations local.
The credit organism will destine resources to the payment of the obligations contracted and not satisfied by the local organizations, generating in return a credit of ICO against these, that will have to give back in a maximum of three years and that it will have by guarantee the participation of the concrete organization in the tributes of the State. The operations will have a maximum limit of 25% of the annual amount of the deliveries at the expense of the participation of the local organization in tributes of the State of year 2011, that is to say, about 3,400 million Euros. In this way, it added Rubalcaba, the Government takes care of " difficult situacin" in that they are so much the suppliers as the own local organizations at the moment of special difficulty. Source of the news: The Government raises from the 50 60% the minimum value of awarding of auctioned houses