Granada City Council Still Paying Off 28.5 Million Euro Debt: Analysis of 2024 Budget Budget Reveals

The preparation of Granada’s budget for 2024 has generated, as happens with each file, reports on all the economic aspects of the City Council. And an important one, which receives its own chapter, is the municipal debt. What the City Council owes between credits, invoices and also mortgages that were requested to start large urban projects when the capital could go into debt in good times and adjustment plans did not prevent these expenses. These operations, by the way, were all promoted by Emuvyssa, the former municipal housing company, and inherited by the City Council after its extinction. And all, also, carried out during the government of José Torres Hurtado. Then came the exponential growth of the city’s debt and the adjustment plan to avoid the intervention of the Treasury in a management stage that left projects but also a lot of debt in the city.

From an analysis of this file, consulted by Granada Hoy, it is proven that the Granada City Council is still paying up to five million-dollar mortgages that were requested between 2008 and 2013 to face large urban projects in the city such as the Cortijo del Conde or Santa Adela herself. The sum of these mortgages is 28.5 million euros that were requested from banking entities and that have not yet been fully amortized. In fact, some will have to be paid until 2027, 2033 and until 2041 and there is still an outstanding capital of 8.6 million euros.

For these mortgages, the Granada City Council will pay installments this March for a total value of 143,383 euros.

The five operations

The largest mortgage was requested in 2013 for the project Equestrian Parking, after the equestrian society left there and the construction of an underground parking lot by Emuvyssa and the upper plaza. A car park managed by the City Council through Gegsa and for which it requested a mortgage of 11.8 million for twenty years that will be paid until 2033. The installments in 2024 are 70,978 euros per month. As of March of this year, 5.5 million had been paid and there is still outstanding capital in this mortgage of 6.1 million. With the interest, when the mortgage is canceled in July 2033, 16.3 million euros will have been paid, five more than what was requested for that interest increase, at 3.7%.

The oldest was opened in December 2008 for 7.7 million for the Cortijo del Conde. They are soils inherited from the extinct Emuvyssa, about thirty plots in this area of ​​the city. But it was not a profitable operation since they have been in disuse and with projects on the table such as the creation of a large technology park within Granada’s strategy as a center for Artificial Intelligence and Telecommunications. They have been for sale for years but had no outlet due to the economic crisis and then the pandemic. The last attempt to refloat the area was in 2022. The mortgage was requested for 19 years and will be canceled in February 2027. It has a rate of 4.25 and in 2024 monthly installments worth 49,964 euros will be paid. In March of this year, 4.3 million has already been paid and 1.4 million remain to be paid.

In 2009 the mortgage was requested for the building project in the plan called Artillery Barracks, next to Cervezas Alhambra. VPO, garages and storage rooms were also built by the former Emuvyssa. For that, a mortgage of 2.8 million was requested that will be paid in 2027. It has monthly payments at an interest of 4.25%. This March a fee of 12,133 euros will be paid and 325,961 euros remain to be paid. It will be canceled in March 2027.

In 2010 the mortgage was requested for Saint Adela of 5.1 million and with a duration of 17 years and quarterly payments that in 2024 will be about 20,000 euros. As of March of this year, 73,069 euros remain to be paid. The interest on the loan is 4.25%.

It was in 2011 when another mortgage was requested, for 1.1 million, for the project. Residencial Los Olivos, in El Fargue, also promoted by Emuvyssa, the former municipal housing company. A 30-year mortgage with monthly payments that will be paid in 2041, the furthest of the five active mortgages and that until 2021 had a monthly subsidy amount from the Junta de Andalucía of 1,992 euros. In March 2024, 3,200 euros in installments will be paid and 647,198 euros remain to be paid from the credit. It is the lowest fee paid but the one that will be paid for even more years.