Calp City Council reduced the average payment period to its suppliers to 3.67 days in the third quarter of 2020. Thus, the good figures of the previous quarters could be maintained.
The Council takes an average of 3.67 days to pay its suppliers, thus not only complying with the rules on late payment, which require public administrations to pay within 30 days, but also reducing this period considerably. Indeed, this period reached 44.85 days in the third quarter of 2015 and 1,000 days in 2011.
This data will lead to greater confidence of companies and suppliers in the City Council, is a guarantee of solvency and a guarantee for companies and businesses that cooperate with the City. It also means greater competition among bidders for public contracts and thus a greater variety of offers and services.
The Average Payment Period for Suppliers (PMP) was introduced by the Organic Law 2/2012 of 27 April 2002 as an expression of the time of payment or late payment in the settlement of commercial debts. All public administrations are obliged to publish their average payment period, which they must calculate using a common method.