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Decree Law No. 5/2019

Publication: Republic Diary No. 9/2019, Series I of 2019-01-14
  • Issuer: Presidency of the Council of Ministers
  • Diploma Type: Decree Law
  • Number: 5/2019
  • Pages: 113 - 121

Summary in plain english

What is it?

This decree-law establishes rules about the settlement of the debts from User Entities to the Managing Entities, regarding the water supply and waste water sanitation systems.

As user entities are deemed the local autarchies, the municipal and intermunicipal services and the municipal and intermunicipal companies which have as object the exercise of the water distribution and waste water sanitation activities.

As managing entities are deemed the entities which manage multi-municipal and other state-owned systems and the entities which manage partnerships between the State and the local autarchies in the water supply and waste water sanitation sector.

What is going to change?

Debt settlement agreements between the user and managing entities may be entered.

These agreements constitute payment plans for the debts:

    • derived from the provision of water supply and waste water sanitation services which was not paid until 31 December 2018, or
    • derived from a legal proceeding began until 30 September 2018.

The debt settlement agreements may now be entered for a maximum period of 25 years and benefit from a reduction corresponding to 30% of the accrued interest until 31 December 2018.

However, the agreement only takes effect if, namely:

    • there is a favourable deliberation by the competent autarchic entities; and
    • the signed agreement is subject to the prior supervision of the Court of Auditors, until 31 March 2019.

The managing entities’ credits, derived from these agreements, may be transferred to third parties (that is, the credit claim is transferred to another individual).

What advantages does it bring?

This decree-law promotes a solution for the historical debts to the water supply and waste water sanitation systems, through mechanisms which ensure and ease the payment of the debts for the provision of these services.

When does it enter into force?

This decree-law enters into force on the day following its publication.

Original Version

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