Leganés opposition rejects debt settlement to save on interest

The local government proposed to pay off 21.6 million euros, but PSOE, Vox, Más Madrid, and Podemos voted against it.

Facade of a town hall in the Community of Madrid with a balcony and iron railings, warm afternoon light.
IA

Facade of a town hall in the Community of Madrid with a balcony and iron railings, warm afternoon light.

The local government of Leganés, formed by PP and Unión por Leganés, failed on Thursday to approve a budget modification aimed at pre-paying 21.6 million euros of bank debt.

The proposal, advocated by the Councillor for Finance, María Estévez, sought to settle two credit operations used last year to finance municipal investments such as the Vereda de los Estudiantes civic center, the Solagua swimming pool, and the reform of the citizen security building. With a surplus exceeding 100 million euros, Estévez argued that the early payment would generate savings of thousands of euros in interest for citizens.
However, the opposition groups –PSOE, Vox, Más Madrid, and Podemos– voted against it. The spokesperson for Vox, Beatriz Tejero, criticized the measure, calling it "senseless" to "get rid of debt only to become indebted again" and reproached the local government for signing the credits only to ask for their cancellation.
For his part, the spokesperson for Más Madrid, Carlos Poblete, attributed the need to use the surplus to the "incapacity of the Executive to manage its own municipal budget," reminding that the responsibility for signing the credits lies with the government.
The ULEG representative, Carlos Delgado, chided the opposition for preferring to "let the surplus funds gather dust in a drawer" rather than "saving citizens interest," and urged them to allow the government to move forward with its projects.
Finally, the spokesperson for the PSOE, Javier Márquez, recalled the obligation under the Budgetary Stability Law to first attend to creditors and then to other obligations, pointing out that 7.4 million euros are pending payment to suppliers and calling the government's proposal "reckless."