The City Council signs a loan of 31 million to invest in neighborhoods, schools, cleaning and parks
- The delegate of Finance and Public Administration in the City of Seville, Joaquín Castillo (PSOE), has signed the credit operation provided in the budgets of 2018 that allocates 31.3 million euros to investments for schools, public transport, cleaning, improvement of neighborhoods, parks and gardens or sports facilities in the capital.
The City Council signs the loan with Caja Rural del Sur and Bankia AYTO DE SEVILLA
The transactions have been subscribed by Caja Rural del Sur for an amount of ten million euros at a fixed interest rate of 0.50 during the amortization period, and with Bankia for an amount of 21.3 million euros with a rate of fixed interest rate of 0.60, as reported by the Consistory in a press release.
This operation represents an average credit cost of 0.56 percent, an index that is well below current market rates and better conditions than those achieved in recent years by the country’s main administrations. In total, twelve proposals were received in the public tender that reached 217.7 million euros, compared to the 31.2 million euros that were requested.
The City Council’s general budget for 2018 links 31.2 million euros in investments to this credit operation following the same model that was already executed in 2017. In this sense, with the initialed operation, nine million euros are activated, among other measures. euros for investments in neighborhoods of the Planning Department, more than 800,000 euros for parks and gardens; 1.5 million euros in investments by Lipasam; or more than three million euros for schools and municipal buildings.
These resources, moreover, are not strictly linked to the end of the year, so the investments can be executed throughout this year and the next without it being necessary to re-enter them in the budget.
For his part, Castillo explained that “it is an important agreement that makes it possible to streamline operations of general interest for the city of Seville, contemplated and planned in budgets with the utmost rigor.” These are operations that facilitate investment in matters of public interest. maintaining the line of efficiency and budgetary stability that have allowed, for example, that the City Council of Seville was the first of the great consistories of the country to leave behind the crisis according to the competent fiscal authority “.
In this sense, Seville maintains with this operation a situation of “financial consolidation and balance, enhancing investments, as well as debt planning that places the city with one of the indexes of indebtedness per inhabitant of reference in the country and the lowest of the last decade. ” The year 2017 closed with a debt of 325 million euros, which meant a reduction of 80 million euros compared to June 2015, the beginning of the mandate.
The forecast for 2018, including the approved credit operation, is to close the year with a debt of 312.2 million euros, which will have reached a new reduction of 13 million euros. In 2008, the outstanding debt amounted to 420 million euros, a figure that was rising to reach its highest level in 2012 with 485 million euros. Since then, there has been a particularly pronounced decline in 2015 and 2016.
This situation of sanitation and the management carried out has allowed the Seville City Hall to be recognized by the Independent Tax Authority in the last report issued by this body under the Ministry of Finance for the adequate compliance with the expenditure rule, obtaining a surplus in the last two years and the level of indebtedness much lower than the limits established by the regulations.
“We have managed with an efficient management and with a rigorous work to make compatible the reduction of the indebtedness of Seville, that in these moments is very low, with the development of formulas that allow the execution of the necessary investments for the city”, has concluded the delegate .