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.
