Lagos council pays off its government loan

Paul Rees 29 December 2017

lagoscrest Lagos council, apparently awash with ratepayers’ cash, is making the welcome move of paying off its government loan, thus releasing the municipality from some inconvenient restrictions.

The loan was taken out five years ago as the council, like most others, was wallowing in short and medium-term borrowings but the final payment of €2,368,421 will clear the loan taken out under the Support Program for the Local Economy (PAEL).

The original loan, taken out in 2012, was for €9,508,643 with a repayment period of 14 years. The loan involved the council agreeing to a Financial Adjustment Plan which it is now free of.

The council took out the loan due to the financial difficulties caused by the sharp fall of its main sources of income related to a previously healthy property market.

According to Maria Joaquina Matos, Mayor of Lagos, the past few years have been spent strengthening the council’s finances, the loan repayment being a good indication that Lagos council is back on a more stable fiscal footing.

Comments

0 #7 Denby 2017-12-31 11:16

Congratulations to Lagos Council for reducing its debt. Revenue collected for 2018 can now be be used for developing the local community and infrastructure for business and job creation.
Hope other Councils are taking note.

-1 #6 Mike Towl 2017-12-31 08:11

Great. Does this mean we will get the Bins emptied?

-1 #5 Ed 2017-12-30 14:30

Quoting John Cowan:

Are we sure that they haven’t re-financed the loan? What is their total indebtedness before and after paying off th e government loan. The same trick has been used at national level to make claims like “Portugal pays off its IMF loan early” without mentioning that it borrowed the money at a better rate from elsewhere.

I doubt any council would get a better financial deal as under the taxpayer funded PAEL scheme, but it's always possible.

0 #4 John Cowan 2017-12-30 14:29

Are we sure that they haven’t re-financed the loan? What is their total indebtedness before and after paying off the government loan. The same trick has been used at national level to make claims like “Portugal pays off its IMF loan early” without mentioning that it borrowed the money at a better rate from elsewhere.

0 #3 John Cowan 2017-12-30 14:27

Are we sure that they haven’t re-financed the loan? What is their total indebtedness before and after paying off th e government loan. The same trick has been used at national level to make claims like “Portugal pays off its IMF loan early” without mentioning that it borrowed the money at a better rate from elsewhere.

+3 #2 Chip 2017-12-30 12:50

If they are "awash with ratepayers' cash" then they must have been incredibly prudent. My "council tax" and IMI together are very reasonable and about 40% of what I pay for a similar sized property in the UK.
We also see the Mayor of Lagos regularly, attending everything from national parades to football matches - never seen our mayor in the UK.

+6 #1 Plain Speaking 2017-12-29 19:00

Well done Lagos Council. Portimão may possibly follow suit by the year 3000!!!!

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