Albufeira council has astounded its ratepayers by proposing to pay off its government loan in full, years before it is due, from a whopping €25 million surplus accumulated over 2014.
The PSD led council votes tomorrow on the proposal by the Socialist Party for an early and full settlement of the council’s emergency borrowing of €16 million under the Plan to Support the Local Economy scheme, according to the socialist councilor Fernando Anastácio.
The original loan was repayable over 20 years to 2033, according to Anastácio, who believes that the municipality has the financial means to settle the loan now, from the huge surplus it has accumulated this year at the expense of ratepayers.
The socialists argue that by paying off the loan, rates can come down as there will be no annual interest payment to the government and there will be no need to hoard money to pay off any more lump sums, owed to the government at least.
"A municipality does not exist to make money over time, it is a disservice to the economy," said the socialist councillor today, adding that there is currently a stranglehold on investment by the municipality which is affecting the development of city and the county.
Add to this, that Albufeira has been skinning its residents for years to the detriment of its householders and its businesses, the loan should be paid off and rates reduced for 2015.
The loan agreement for €16.6 million was signed between the municipality of Albufeira and the State in June 2013 to get it out of a fix.