The new Government group in the Arrecife City Council has proposed a new payment plan to the Justice system to settle the millionaire compensation for the Ginory plot. The mayoress of Arrecife, Astrid Pérez, has already transferred this proposal to the Contentious-Administrative Court Number 3 of Las Palmas de Gran Canaria, which on July 31 issued a provision ordering the City Council to "propose a reasoned payment proposal" of the amount to which it is obliged under the judgment of July 8, 2016, issued by the second section of the Contentious-Administrative Chamber of the Superior Court of Justice of the Canary Islands.
Faced with this provision, the mayoress of Arrecife has proposed a new plan to pay the amount of 31,170,596.32 euros in monthly installments until 2032, 4 years less than what the previous government group had proposed.
According to the Consistory in a statement, "in this new payment plan, which must be approved and ratified by the Court, the mayoress proposes an element that would bring significant savings to the capital City Council in legal and late payment interest costs", since "together with the aforementioned plan, it is made clear that from 2021 the local administration would study the possibility of financing the partial or total payment of the debt through the arrangement of a loan operation".
They hope to "recover financial balance" from 2021
The mayoress recalls that the Arrecife City Council is currently working with the extended budgets of 2017 and last July, in the first plenary session of the new Government team, it was approved to go to a Financial and Budgetary Stability Economic Plan due to Arrecife's failure to comply with the so-called "spending rule".
Now, the new government group hopes that the City Council will recover the balance of its finances before 2021, which would allow it to "establish that loan operation achieving lower interest rates", since currently "the banking market offers interest rates to public institutions below 1.5%", when the owners of the land would be paid interest of between 3.5 and 4% for deferring payment of the debt until 2032.
The previous government proposed a payment until 2036
The proposal that the previous government group had submitted to the Court, which established a deferred payment until 2036, together with the payment of 1.2 million and annual installments, was rejected and is currently appealed. Now, with the new plan, the City Council wants to make monthly payments, shorten the term until 2032 and propose a possible early cancellation from 2012, partial or total, by resorting to a loan.
From the City Council they recall that "the principal of the compensation for this expropriation of the Ginory plot was 20,012,622.01 and in legal and default interest" and that "almost half of the principal is only in interest".
Now, the new government group is waiting to see if the Justice system accepts the new payment plan, which it claims has "the support of the Intervention and legal services of the Arrecife City Council".
