The Faro City Council announced today that the Court of Auditors (TC) has given a favorable approval, dated 30 October, on the 4.8 million euro loan agreement that will serve to make “nuclear” investments.
The financing, signed with Caixa Geral de Depósitos, payable over 12 years, is divided between 2019 (2,500 euros), 2020 (2,73 million euros) and 2021 (2,06 million euros).
The amount will go to a set of interventions that are "crucial" within the framework of the strategy defined for the development of the territory and the promotion of activities, stressed the municipality.
The planned interventions and procedures that can be launched now are the Official Animal Collection Center (estimated at € 1,250,000); Bordeira Cultural and Innovation Center with Stone Museum and Accordion Museum (1,201,000 euros); the first phase of the future 3rd Circular, from 25 de Abril avenue to Penha road (850,000 euros); the requalification of the Mata do Liceu Forest (850,000 euros) and the requalification of the centenary Alameda João de Deus (650,000 euros).
Regarding the conditions of the contracted loan, “they are quite favorable, with a spread of 0.74% and no floor when Euribor shows negative values, as it currently does, allowing today for the loan agreement a spread of only 0.5%, ”the executive said in a statement.
With the approval of the Court of Auditors for this contract, the municipality stresses that its strategy is being “recognized” based on the implementation of strict management mechanisms and a large increase in the municipality's productivity.
For the mayor, Rogério Bacalhau, these factors allowed the total debt reduction of the municipality in ten years, from about 71.7 million euros to just over 19 million euros, “thus recovering the capacity that the today, undeniably, it has to make a decisive intervention in the quality of life of all the farenses and those who visit us ”.
The Faroese municipality “can now go to the bank quietly, whenever credit conditions are favorable, and thus make a better management of the financial resources at its disposal”, concluded the mayor.