The municipal government has been able to refinance, after many negotiations and long administrative steps, a significant part of the debt that the Coach of the City of Totana carried with the formalization of the last loan refinancing operation, the most important and complicated credit that Existed with BBVA, within the framework of the Adjustment Plan.
The mayor, Juan José Cánovas formally formalized yesterday, in the presence of the secretary general of the Municipal Corporation, that operation with said bank to refinance a loan that the current municipal councilors met in June 2015.
The first mayor recalled that this loan has been carried over in the municipal negotiations of Intervention and Treasury since 2010 and, since its signature, no amount had been amortized by the previous municipal governments, in this case, the PP.
The mortgage with this bank was formalized in June 2010 for 13,504,864.64 euros;
With conditions that included a fixed interest rate of 6.5 percent and a break-up clause of 8,731,437 euros, ie a requirement that if the totanero Consistory amortized the loan in advance or refinanced it, it had to pay this amount Added to the remaining capital.
According to the mayor, this was a "very complicated" operation that was "blocked" and which, he said, "was a very serious real burden for public interests that resulted in an increase in debt of 22,326,301.64 Euros ".
This operation has been supervised and endorsed by the General Secretariat of the Treasury and Financial Policy of the Ministry of Economy and Competitiveness.
The first mayor recalled that the Ministry of Finance and Public Service issued a report on March 20, 2012 demanding to the City totanero the cancellation of the operation for being "very heavy and damaging" for municipal coffers, although at that time was ignored The ministerial order calling for the annulment of that operation.
The status of this loan at the beginning of the current term, five years after its formalization, collected a capital outstanding of 13,054,126.54 euros;
An amount of 1,716,322.60 euros in terms of unpaid installments, interest and expenses;
And a breakdown of 8,731,437 euros, with a total debt of 23.5 million euros, of which nothing had been paid and the debt had increased by more than 1.2 million euros.
Juan José Cánovas underlined that this operation, after two years of numerous negotiations with the Ministry of Finance and the bank itself, could be tackled and resolved within the framework of the Adjustment Plan, as well as access to ministerial aid "with seriousness And rigor "that should prevail in a public institution such as that represented by the City of Totana.
The mayor announced that the formalization of the new refinancing loan, which has also been approved accordingly by the Ministry of Finance and the Secretary General of the Treasury, amounts to 21,008,445.80 euros, with a total saving of 5,075,556.43 Euros of the 26,084,000,23 required.
In addition, it reported that the savings in this operation exceeds five million euros for municipal coffers, and subscribes at an interest of 0.44% (6% less than the one signed in 2010), and also, within the framework Of assistance from the Ministry's Aid Funds, which covers the approval of the Adjustment Plan, which will allow 20 years for the amortization of quotas, starting from the initial 10 years.
The mayor expressed his satisfaction and the municipal government for responding, "with seriousness and coherence" to this complex procedure and, as he reiterated, contribute to the important commitment to take "a step" in the economic-financial stabilization of the City of Totana .
