Home » Business » ULEG describes as “delusional” the savings of Leganés when allocating surplus to the payment of debt: € 21,700

ULEG describes as “delusional” the savings of Leganés when allocating surplus to the payment of debt: € 21,700

Leganés City Council. Photo: Lito Lizana

The PSOE Leganés decision to allocate part of the surplus to paying debts, instead of investments, was criticized by all parties.

One of the most controversial decisions of the Leganés City Council in recent months was to allocate part of the surplus to paying debts. Specific, about 7 million euros to pay bank loans. Now, ULEG has denounced the “negligible savings” that this decision has meant for the municipal coffers. According to the calculations made by the training, the City Council of Leganés saved € 21,700.

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Specifically, it was agreed to cancel two loans. The first, of 1,045,588.27 of BBVA for which a fixed interest of 3.99% was paid due in 2023. The second, 5,896,574.23 euros of CAJAMAR that expired in 2031 for which interest is paid variable of 0.987%. Total the interest that has not been paid thanks to this cancellation early amounts to € 21,700.

In ULEG they doubt the sense of canceling the loan at 3.99%, “but already It is delusional to allocate 6 million to amortize for which less than 1% is paid and with which only 11,000 euros of interest will be saved and more considering that the City Council is processing a new loan ”.

With this measure, the “socialist” mayor of Leganés acts comparatively like a father or mother who stops dressing their children or paying for school supplies to pay off the mortgage and save 20 cents in interest.

ULEG

Dozens of investment proposals

It should be noted that given the current social emergency situation, the social entities proposed to allocate this surplus to social spending. With the exception of PSOE, all parties, including C’s Leganés, opposed this agreement. Thus, they proposed increasing spending on Social Services or on the construction of cultural centers. “It is not that we do not have any proposal but that the surplus must be executed in the current year and a cultural center is not built in a few months ”, responded the mayor, Santiago Llorente, in the face of criticism.

“Taking into account the social impact of the pandemic that continues to suffer today, and When the ERTES are over, it will be noticed more, this million is insufficient.”, Assured Miguel Ángel Recuenco in the approval debate. Both the Federation of Neighborhood Associations and ULEG and United Podemos-IU Leganés made allegations to this agreement. Among them was the hiring of teachers, a program for the defense of minors or for the care of families at risk of exclusion. None were approved.

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