Commission awaits details regarding the extent of flood damage.
Headline: Three Months After Disaster, Valencian Businesses Still Await Compensation, Doubting Recovery
Breaking News: Monday, 28 April
In an interview with EFE, Rafael Torres, president of the Confederation of Commerce of the Valencian Community (Confecomerc), revealed that businesses in the disaster-stricken municipalities are still uncertain about their compensation from the Insurance Consortium, three months on. Up to 30% of these businesses believe they won't reopen, expressing worry and confusion about where to turn for help.
The central and regional governments had already arranged direct aid of up to 10,000 euros each, with additional 8,000 euros for Juan Roig entrepreneurs, and over 90% of this aid has been distributed. However, Torres remarked that information from the Insurance Consortium has been "little transparent" and businesses struggle to decide whether to continue operations or close without knowing the exact compensation they can expect.
A survey of 74 business files from the zero zone populations showed that 20% have received an advance, but only one has a valuation from the Consortium. Torres pointed out that without knowing how much aid is forthcoming, businesses cannot make decisions. He added that while progress is being made without clear information, time is running out, as each passing minute sees more businesses deciding not to reopen.
This transparency issue extends to the request for zero-interest loans from the ICO and the Valencian Institute of Finance (IVF). Torres expressed concern that the government wouldn't allocate more direct aid and would rely on Consortium payments and the Solidarity Fund, which he fears may be insufficient and take months to materialize, possibly being diverted to infrastructure or public space recovery rather than direct aid for the affected.
Torres believes that valuations are complex, but three months on, if no solutions are implemented, the ongoing uncertainty could cause an increase in the number of businesses choosing not to reopen. He laments the lack of tax reduction or VAT exemption proposals and suggests that the Insurance Consortium should advance at least 50% of the contracted policy, with subsequent invoice justification, as a potential solution.
Meanwhile, according to banking entities, around 40% of ATMs in the entire affected flood area remain inactive. EFE. (photo)
Related Topics:- Trade- Rafa Torres- Confecomercio- Juan Roig- Consorcio de Seguros- Valencia- Comunitat Valenciana- Indemnification- Spanish Government- EFE
Additional Insights:- Over 116,000 claims have been submitted to the Insurance Compensation Consortium, with a total aid package valued at $3.5 billion.[2]- Sara Navarro, owner of Bruken Pipes, a century-old pipe factory, has yet to receive any financial support, with their premises' files still unopened, indicating delays in the compensation process.[1]- Concerns exist about underinsurance and insufficient compensation, as some businesses feel the awards are less than the damages they have incurred.[1]
- Rafael Torres, president of Confecomercio, is concerned that the lack of transparency from the Insurance Consortium might prevent businesses from receiving compensation after the disaster, which could lead to an increase in closures by 2025.
- Torres suggests that the Insurance Consortium should advance at least 50% of the contracted policy, with subsequent invoice justification, to alleviate the uncertainty and help businesses make decisions about their future.
- In addition, the lack of tax reduction or VAT exemption proposals leaves the average business in the Valencian industry wondering where they can find additional support to finance their recovery.
- Although over 90% of direct aid from the central and regional governments has been distributed, businesses remain doubtful about the overall financial recovery due to the slow process provided by the Insurance Consortium and the insufficient funds of the Solidarity Fund.
