The full council of Jaén approves the refinancing of five loans totaling 12.5 million euros

  • The plenary session of the City council of Jaén has approved this Monday the refinancing of 12,5 million Euros, thanks to the non-attached councilors. The yes of one of them and the abstention of the other two has allowed the government team (PP) to take it forward against the PSOE and Jaen in Common (JeC).
Extraordinary plenary session of the City Council of Jaén on the refinancing of loans. EUROPA PRESS / JAÉN CITY COUNCIL

The session, of extraordinary nature, has barely lasted 50 minutes with a grouped debate on the five operations of as many credits, which are part of the mechanism of the Fund for Town Councils in financial risk foreseen by the Ministry of Finance.

Councilor for Finance and Recruitment, Manuel Bonilla, justified the urgency of the plenary precisely to include it in the aforementioned tool of the Government and explained that, along with others, were collected in the fund of 2015, although they did not get signed because “the conditions did not fit expressly” to those indicated in the plenary session.

In this way, it has “taken almost a year to negotiate” with the two financial entities and they now come with the “approval of the Intervention for being in financial prudence”, which means that it is going to “save a significant amount” . The amortization periods are around ten years and, in addition, default interest “will not be paid”, but “we are forgiven”, so that it only affects “ordinary interests, which are recapitalized by the refinancing instrument. “


The non-attached councilor Iván Martínez has recognized the work of Bonilla and has considered before the operations that, “like it more or less, it continues looking for solutions to the difficult situation” municipal. It has indicated that “one of the basic points” in the economic and financial plan was the refinancing of this type of operations, “even more those of short to long term”. “It is good management to get liquidity,” he said to add that will mean “savings of more than three million euros in interest,” so there is “little discussion about it.”

Victor Santiago, on his side, has considered that “everything to save interest and postpone more debts in accounting is positive”, although he said “it is not that the city can not have investments being” nothing more than paying loans and interest. “In a nutshell, he defended that” something more is required, a long-term vision and policies at a general level that allow us to do something more “for Jaén.

From JeC, his spokesman, Manuel Montejo, has stopped in two details of the operations that do not convince them and that the comptroller gathers in his report on the convenience or not of refinancing a loan already expired and another one that “only has one quarterly “.



In any case, has questioned the “usefulness and covenience of these operations alone,” to understand that the City “can not be limited” to this type of policies that do not lead to “nothing” and that are “lengthen and lengthen a disaster “without any” solution “. In this sense and even “recognizing the effort” of the head of the Treasury, has stressed that the municipal situation “is not going to solve repeating the same policies” and continue refinancing is “the whiting that bites the tail.”

For the PSOE deputy spokesperson, Mercedes Gámez, “they are not short-term operations”, but “long they are longer term”, point where they have specified that “they are between 20 and almost 30 years old”. He has said that they are going to “increase the financial burden” of the Consistory, to which he has joined doubts about the two previously mentioned operations also indicated by JeC as well as “what happens with the interests of delay”.

In his opinion, equally, will not affect “nothing” for the city, but “they are simply time for you (in reference to the PP) until the next elections come.” He regretted that “time passes as it passes through the budget”, which is still pending and each month is said to be delayed the next, but still waiting as expected “the real plan of sanitation” of the City.

So things, the refinancing operations amounting to about 12.5 million euros have gone ahead with the affirmative vote of the PP and not attached councilor Iván Martínez, while Víctor Santiago and Anguita Health have abstained. Both PSOE and Jaén in Common have voted no.

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