The City Council of Ibiza will achieve zero debt after approving, in the extraordinary plenary session convened for this Thursday, November 13, the necessary budget amendment to repay in advance and in full the loan it has with Caja Rural de Aragón, for a total amount of 11,950,190.77 euros.
This operation will be possible thanks to the positive cash surplus obtained after the 2024 budget settlement, which reflects the good economic health of the Consistory. According to Article 32 of Organic Law 2/2012 on Budgetary Stability and Financial Sustainability, municipalities with surpluses must use these resources to reduce their debt.
The loan with Caja Rural de Aragón was the only long-term credit operation in force, formalized for an initial amount of 11.95 million euros, with a term of 96 months and a grace period of 24 months. The interest rate applied was variable (EUR3M + 0.28%), with an initial interest rate of 4.093%, and without early repayment fees.
“Ibiza is free of debt”
The first deputy mayor and councilor of Economic Resources, Gema Marí, stressed that with this cancellation “the City Council of Ibiza will be left with zero debt, after having fulfilled the objectives for which this loan was contracted: to guarantee the investments of the transforming projects of our capital”.
The funds from this financial operation have made it possible to execute essential projects for the municipality, among them:
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The extension of the Can Cantó school (future Es Putxet school).
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Acquisition of vehicles for the Local Police
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Investments in urban mobility
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Improvements in municipal cemeteries
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Renovation and expansion of playgrounds
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Actions on beaches and bathing areas
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Acquisition of funds for the Municipal Library
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Investments in public transportation and sports facilities
Public exhibition and final approval
The file will remain in public exhibition for fifteen working days after its publication in the Official Gazette of the Balearic Islands (BOIB), so that interested persons may present allegations. If they are not presented, the initial approval will be automatically elevated to definitive.
In this way, the City Council will culminate the process that will allow it to be free of financial debt, consolidating an economic management “based on responsibility, sustainability and efficiency in the use of public resources,” concluded Marí.
