The Yaiza City Council canceled this Monday "in advance" the last 7.1 million euros it owed in bank loans, "an operation that not only reduces the Institution's total debt to zero, but also leaves the administration in a better economic-financial scenario for the next municipal accounts", according to the mayor and also head of the City Council's Economy and Finance Area.
"We will approve the 2018 budget next week with the possibility of opening new lines of credit to invest in projects already drafted", said Noda, pointing out that for the government group made up of the Unidos Por Yaiza (UPY) and PIL parties "the financing of the works of the Playa Blanca Sports Pavilion is a priority".
Óscar Noda has been emphatic in pointing out that "the Yaiza City Council definitively covers the 33 million euro debt hole left by Coalición Canaria in 2011" and has recognized "the effort and management of all municipal areas", and "of course the work of his predecessor in the Mayor's Office, Gladys Acuña", whom he accompanied from the last legislature as first deputy mayor and councilor responsible for Economy and Finance.
"Yaiza confirms its good economic-financial health, keeps all its obligations up to date and pays suppliers on time, a sum that derives in the recovery of confidence, which is not free because the Administration and its workers have earned it", said Noda, pointing out that "the municipal Intervention service and the Canary Islands Court of Auditors in their latest annual reports ratify the situation of budgetary stability of the municipality of Yaiza".
Regarding the last payment of 7.1 million euros to the bank, the mayor explained that "it was a long-term historical loan from the Yaiza City Council". "The operation had been agreed with the former Banco de Crédito Local, in the early 90s, which due to years of non-payment of the installments became a debt of about 44 million euros. In 2004, said debt was reformulated with BBVA, agreeing on a principal amount of about 15.4 million euros that had to be amortized in quarterly installments until 2029, and that in the event of non-compliance with any of the installments, it would revert to the previous amount. Thus, Yaiza has totally canceled the debt in just over half the life of the same", he specified.
Chronology of payments
The City Council explains that the first thing that was done, between 2012 and 2013, was to pay 2.5 million credit policies that constituted short-term debt. In December 2015, it prepaid about 2.3 million of the 5.1 million pending from the ICO loan to Suppliers, "which meant eliminating the debt with seven of the 11 banks that agreed to these operations".
Already in December 2016, about 610,000 euros of the 2.8 million pending from the ICO loan to Suppliers were amortized "in advance", "which meant eliminating the debt with one of the four remaining banks". In October 2016, the 721,000 euros pending from the deferred debt with Social Security were definitively canceled, which was set in 2008 at around 5.4 million uros due to non-payment of current installments between 2001 and 2008.
In February 2017, the ICO loan to Suppliers was completely canceled, prepaying the 2.2 million that remained between the three remaining banks. "In this way, this long-term loan was amortized in half the life time, since its validity was set from 2012 to 2022", they point out from the City Council.
In October 2017, the last and definitive installment of the SWAP interest rate swap operation was paid, having paid by the City Council a total principal capital of 1.7 million plus interest in the last seven years of life of this operation signed in October 2010. "And now, in June 2018, the City Council cancels the total amount of the outstanding bank debt", it is concluded from the Consistory.