Benidorm reduces the debt below 37% and will liquidate the Adjustment Plan three years in advance
At the close of 2018, the debt of the Benidorm City Council was below 37%, as indicated by the mayor, Toni Pérez, and the councilor for Finance, Lourdes Caselles, at a press briefing in which they have transferred the data that throws off the liquidation of last year's budget, approved by decree last Friday, and that constitutes a "picture of the economic reality" municipal.
According to the figures transferred by the mayor, like in December 31, the municipal debt was 38,961,131.40 euros - that is, of 36.95%, when the legal limit is 110%. The same document reflects that the City Council meets "the objectives of budgetary stability, rule of expenditure, financial sustainability and sustainability of commercial debt"; and that the budget year was closed with "more than 11 million euros of positive remnant of the Treasury". Of the 38.9 million euros of debt, 16,862,000 euros correspond to the loan arranged by the City Council in 2012 within the Supplier Payment Plan; while 19 million euros correspond to other credits; and the rest, to the return of contributions to the State.
Pérez stressed that "the economic outlook" that these figures show is "completely different" from the one presented by the City Council "in June 2015", when "we set ourselves as a commitment and axes of our economic management to recover the investment to improve the city; do not raise taxes; and accelerate the amortization of the debt, especially the one linked to the Adjustment Plan ". On this last aspect, he stressed that in recent years Benidorm has amortized "more than 42 million euros of debt." To these will be added throughout 2019 the more than 11 million euros of the Treasury surplus of 2018; and the 8 million that will be reflected in the 2019 budget -4 of which will go to the refund of the Adjustment Plan credit and the rest to the repayment of other loans-.
The mayor has advanced that the positive remnant of Treasury "is going to be used primarily to repay the loan arranged by the City Council within the Supplier Payment Plan", since "it is the one that requires the most interest". An amortization that "could be executed today but we will do it gradually so as not to generate tension and not affect the liquidity or the average period of payment to suppliers that currently is less than 6 days".
These more than 11 million euros and the 4 million of the 2019 budget will leave at the end of the year the debt of the Adjustment Plan in 1.9 million euros, "when the forecast that was made in 2012 was to close the current year with a debt of 26 million euros ". This early amortization "will allow the Settlement Plan to be settled three years ahead of schedule," he remarked, "since in 2020 the City Council will have amortized these loans instead of 2023, as was anticipated at the time." In addition, also in 2020 "Benidorm may finance works charged to the positive remnant of the Treasury".
Once the 2018 budget is settled, the government finalizes the draft of the 2019 accounts, which "is being finalized" and that is expected to be made available to all members of the corporation next week.