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The City Council debt offers its best data for the last 19 years after a further reduction of 543,912 euros in the first 2 months of 2019 (14/03/2019)

The plans for efficiency, optimization and elimination of superfluous spending allow Lorca to cut its debt by 66.5 million in recent years, from 105.4 million in 2007 to 38.9 today.

The Councilor for Economy and Finance in the City of Lorca, Juan Francisco Martínez, has reported that, according to the data provided for this purpose by the economic team, the City Council has reduced its debt again, achieving in the first two months this year cut it in another 542,912.85 euros, which puts the total debt of the municipality at 38,956,580.27 euros.

It should be noted that the short-term bank debt has been eliminated,

Martínez Carrasco explained that we are talking about a fact that has been possible thanks to the implementation and execution of successive plans to optimize spending, savings and economic and budgetary austerity, the implementation of which we initiated years ago in order to save the accounts of all Lorca's what was a true bankruptcy.

It is a positive evolution sustained over time over the years, and that has allowed the economic health of the City Council now offer sustainable numbers, after years and years of rigor and seriousness when using the money of the Lorca

We started with an astronomical debt, confirmed at 105.4 million euros after conducting an audit by independent experts in 2008, and now we have improved it to the current 38.9 million.

To get a better idea of ​​the magnitude to which we refer, each Lorca family has gone from supporting a debt of 3,437 euros to 1,296.

Moreover, we are ready to end this year with a closing in the figure of municipal debt that will be around 36.5 million, according to the projections made by the team of officials integrated in the economic and budgetary service.

Martínez Carrasco explained that the improvement of the Consistory's debt means that this figure has evolved with a daily decrease of almost 18,000 euros, and will end the year with the best record since 2005. The data corroborates that the application of the successive plans and measure of efficiency in spending have achieved their objective, and in fact the model developed in Lorca has served as a reference for other municipalities, which have copied the process executed in our City Council.

We must point out that the improvement of these 66,44 million has been recorded even having to face the most negative historical series that our city has suffered, plagued by obstacles.

At first it had to be analyzed in depth what was the real debt of the Consistory.

Once it was finalized, we found ourselves in serious trouble, because together with the inherited debt, we found thousands of invoices without paying the City Council's suppliers, which were later added to judicial rulings (mainly the disastrous urban agreements), and the devastating effects of the 2011 earthquake, the floods of 2012 and the worst economic and labor crisis that our country has suffered in decades.

Throughout the next year will be deepened in the improvement of economic indicators of this City, so that the debt will fall to 36.5 million euros, the Negative Remainder of Treasury will go down to be technically 0, while technicians Municipalities confirm that this project complies with the principle of budgetary stability, financial sustainability and expenditure rule.

Source: Ayuntamiento de Lorca

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