The Plenary Session of the Arrecife City Council approved this Monday an extrajudicial recognition of credit for the amount of 2,992,399.44 euros, corresponding to outstanding invoices, as well as a credit modification that will allow for the early repayment of 6.7 million euros of the Ginory loan.
Two agreements that, as explained by the deputy mayor and head of Finance, Echedey Eugenio, allow for continued progress in the regularization of outstanding obligations and the reduction of the City Council's financial debt, with the aim of continuing to clean up municipal accounts.
During his speech at the plenary session, Eugenio recalled that the extrajudicial recognition of credit is an extraordinary procedure provided for by law for those invoices that, due to different circumstances, have remained pending.
The head of Finance stressed that the invoices included in this file have been verified by municipal technicians, who certify that the services have been rendered and that the price is appropriate to the market and the contracts made.
“What we are trying to do is settle all outstanding invoice debt and clear out, so to speak, the pending invoice drawers of the Arrecife City Council,” said the councilor.
The deputy mayor also highlighted that this is the first extrajudicial recognition of credit that the current governing group has brought to the Plenary Session in the three years of its mandate and acknowledged that the objective is to minimize this type of procedure.
In this regard, Eugenio highlighted the work being done by the Finance Department and the municipal audit office to expedite the processing of invoices and reduce these types of situations.
“Both the audit office and this finance councilor constantly warn the departments that they need to be more agile in processing invoices,” he said.
6.7 million euros from the Ginory loan
In the same plenary session, the Arrecife City Council approved a credit modification through a supplement to prepay 6.7 million euros of the loan intended for the payment of the expropriation of the Ginory plot.
Echedey Eugenio explained that the City Council obtained a treasury surplus of around 6.7 million euros in 2024 and that at the time, the Council of Ministers approved the possibility that these funds, which until then had to be used for debt cancellation, could be used for economically sustainable investments.
This possibility initially led to the suspension of early debt repayment. However, the analysis of the City Council's financial situation has confirmed that Arrecife has sufficient surplus to face economically sustainable investments, so the Treasury Department has opted to allocate those 6.7 million euros to reduce debt.
“That is why we are going to cancel that amount of money from the Ginory loan,” said the deputy mayor, who concluded by stating that “we aspire to leave the City Council practically debt-free at the end of the term.”
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