Tarragona City Council seeks 14 million euro bank loan for investments in 2024 budget

Tarragona City Council is seeking offers to request a bank loan of 14 million euros. This Thursday, the council published the news about the city’s electronic headquarters, which establishes that the administration of Plaça de la Font will wait for proposals until the end of this month in April, with the aim of the investments that planned to be implemented in the 2024 budget. .

As specified in the order signed by the deputy mayor of Hisenda i Serveis Interns, Isabel Mascaró (PSC), the will of the corporation is to sign the loan this year, this, with a gap so that it began to be. is paid up to May 15, 2026.

Variable priority

Among the conditions that the City Council will put on the table, the will to give priority to the variable interest of the loan stands out, because if there is a connection in the conditions obtained “a preference will be given to the rate variable”, as indicated in the document signed by Mascaró, which initially proposes as options “the fixed or variable rate, with a difference over one year Euribor.”

The council proposes to pay off the loan with the “German system”, through a variable installment with a fixed amortization, which would be paid in one annual payment every May 15 (or the next business day, if the 15th is Sunday). The early cancellation fee must also be zero.

In his report, the Head of the Council’s Costs, Accounting and Budget Stability Service approves the activity because “the amount of the loan does not exceed 10% of the normal resources prepared in the 2024 budget). In this sense, the maximum amount would be 18.8 million euros.

The debt will decrease by 5 million

Despite the approval of this new loan, it is the way that the City Council intends to reduce the debt, at least, by five million euros. This will be true because although this year’s accounts consider paying 14 million to the banks and requesting a loan for the same amount, another five million will also be allocated to cover municipal liabilities thanks to the surplus in 2023.

For this reason, the figure that, for the moment, has been confirmed will reduce the debt to 19 million, waiting to find out what will be done in another 2.8, which will according to approved city sources means, after many years, the financial protection council of Generalitat can leave Catalonia in 2025.