- Torrevieja City Council has secured a €32.67 million long-term loan for 12 years with an initial 2-year grace period.
- The loan was awarded to Eurocaja Rural S.C.C. with a fixed interest rate of 2.47%, well below the legal maximum.
- The financing supports major public investment projects planned for 2025 aimed at infrastructure, urban renewal, and social facilities.
- Projects include road repairs, port area reorganization, cultural site renovations, and building improvements.
- The local government emphasizes responsible financial management ensuring economic stability and community growth.
Torrevieja Secures €32.67 Million loan for Key Public Investments in 2025
The Torrevieja City Council has successfully arranged a long-term bilateral loan amounting to €32,670,566. This funding is earmarked for critical public investment projects outlined in the 2025 Municipal Budget. The entire funding operation, authorized by the Generalitat Valenciana through the Directorate General of Local Administration, reflects the city’s sound financial health, enabling it to undertake ambitious improvements without jeopardizing fiscal stability.
loan Details and Financial Stability
The loan contract spans a duration of 12 years and features a two-year grace period, during which the municipality only pays interest on the amounts drawn. The flexibility of a gradual drawdown during the initial period will help Torrevieja adapt borrowing to cash flow needs.
Seven bids were received from four financial institutions:
- Banco Bilbao Vizcaya Argentaria S.A. (BBVA)
- Banco Sabadell S.A.
- Caja Rural Central S.C.C.
- Eurocaja Rural S.C.C.
Eurocaja Rural S.C.C. offered the best terms, with a fixed interest rate of just 2.47%, substantially below the maximum limit allowed by regulation. This competitive offer guarantees responsible and efficient debt management for Torrevieja.
Priority Public Investment Projects Funded by the Loan
The loan will finance multiple strategic projects intended to improve infrastructure, enhance urban spaces, and provide valuable community services. Some of the key initiatives include:
| Project | Allocated Budget (€) |
|---|---|
| Infrastructure Replacement and Road Resurfacing | 5,000,000 |
| Reordering of Areas Adjacent to the Port | 4,900,000 |
| Remodeling of Eras de la Sal and Ice Factory | 2,340,000 |
| Re-paving and Repair of the Levante Breakwater | 2,418,601 |
| Remodeling of La Plasa Building | 4,500,000 |
| Progress of Los Locos Beach Promenade | 1,000,000 |
| Construction of Alzheimer Care Center | 1,300,000 |
municipal Leadership Comments
Domingo Paredes, Torrevieja’s Councilor for Economy and Finance, praised the city’s current economic standing, stating, “The financial sector’s positive response highlights Torrevieja’s excellent economic situation. It allows us to access financing under vrey advantageous conditions.”
“This loan enables us to execute an ambitious investment program without compromising our budgetary stability. Our focus remains on improving the city, creating jobs, and stimulating the local economy through responsible management and financial solidity,” he added.
What This Means for Residents and the City’s Future
With this well-structured financing secured, Torrevieja is poised to:
- Revamp vital infrastructure improving daily life and connectivity.
- Restore culturally significant sites like the Eras de la Sal and the Ice Factory,boosting tourism and heritage preservation.
- Strengthen public spaces such as the port areas and the popular Los Locos beach promenade.
- Enhance social services with facilities like a new Alzheimer care center.
- Maintain financial prudence and economic growth in harmony.
This comprehensive investment program demonstrates Torrevieja’s commitment to sustainable urban development, ensuring a better quality of life while safeguarding its fiscal health for future generations.
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