The local Government Board has approved the formalisation of a credit operation in favour of the capital’s City Council amounting to 20 million euros, aimed at addressing various investment requirements outlined in the 2024 budget. Following an evaluation of offers submitted by credit institutions, the municipal corporation has awarded the loan agreement to Cajamar, featuring a variable interest rate set at annual Euribor + 0.25% and a late payment penalty of 1% annually.
The mayor of Santa Cruz, José Manuel Bermúdez, highlighted yesterday that “the fiscal health of the Chicharrero City Council reflects a debt level that is well below the legal thresholds, enabling these operations to be undertaken easily without needing authorisation from agencies responsible for the financial oversight of local authorities.”
The Councilor for the Treasury, José Alberto Díaz-Estébanez, added, “This loan amounts to 20 million euros, as outlined in the 2024 budget, and we intend to finalise it with the Cajamar financial institution before the year’s end, as they have put forth the most advantageous financial offer among the banks invited to participate.”
Additionally, “there are other significant projects, including the rehabilitation of bridges in the Santos ravine within the Bravo Murillo area, which involves an investment of 2.7 million euros, as well as several expropriations and the purchase of a building earmarked for the municipal headquarters of the Southwest district, with a value of 1.6 million euros, among others.”
“This credit operation executed by the City Council guarantees the sustained provision of Public Services and Investment expenditure over time,” stated the mayor.
