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Good financial health presented by the City Council has again become palpable with the response received from credit institutions for the conclusion of a loan of 28.5 million euros to finance most of the investments planned in the budget of 2016 .

The Governing Board held today has approved this operation signed with Unicaja, BMN and BBVA, combining variable interest rates, indexed to quarterly Euribor, with fixed interest rates.

Although the amount requested totaled 28.5 million euros, the City has received ten bids for a total amount of 157.7 million euros, which is seven times the amount requested.

Councilman Hacienda and Employment, Eduardo Martinez-Oliva, has been very satisfied because it "has managed to obtain loans to excellent conditions".

The funds raised will allow investment tender important actions planned in the budget, including:

- Burying of the railroad AVE

- Recovery of San Esteban site and its surroundings

- Rehabilitation of the old jail

- Promote the rehabilitation of pavilions Artillery Barracks

- Promotion of infrastructure investments in neighborhoods and districts

- Action Plan and Murcia Orchard River

- New urban quality plan

- Plan of libraries and reading rooms

- Rehabilitation of the District of Los Rosales in El Palmar (phase II)

Stability, savings and financial prudence

The law prohibits new operations set up long-term credit to local authorities that settled the previous year with negative net savings, with a budget deficit or debt volume above 110% of the current revenues of the previous year.

However, the state in which the municipal coffers are far from that situation.

With this loan, and taking into account the planned early repayment as a result of positive cash remaining for general expenses of 13.8 million euros, the projection of financial debt to December 2016 the City of Murcia is 162.1 million euros, which is expected to decrease the ratio of debt to income.

With the operation, this ratio was 58.21%, which keeps you well below the 75% limit established by law, so the operation has not specified authorization from the Ministry of Finance and Public Administration, since the City Council Murcia meet budgetary stability and has positive net savings.

In addition, the transaction complies with the principle of financial prudence, established by the State in 2014.

Source: Ayuntamiento de Murcia