Portal de Cartagena
www.portaldecartagena.com
The council of the municipal corporation Old Town Cartagena today approved the refinancing of its debt with a new loan that will consolidate two previous to a lower interest rate and a longer period of amortization.
The transaction will enable the company to pay this year 3.8 million less in interest and amortization.
This will facilitate their economic viability and relieve accounts Hall.
As explained by the manager of the company, Luis Miguel de Andrés, Old Town has two long-term loans and a credit concluded.
One of those loans is with Barclays entity that is engaged a good interest rate. 1.05%, which does not advise refinancing Its amount to 31 December was 12.25 million euros.
The other loan is arranged with Banca Mare Nostrum, at a rate of 5.27%.
Amount to 31 December 2014 was 7.5 million and maturity on June 10, 2019.
The credit facility is also arranged with BMN, at an interest rate of 6%, amounting to 2.8 million euros maturing on March 28, 2015.
For Luis Miguel de Andrés, the latter two operations are about high interest rates, plus the immediacy of the return of the policy to the detriment providers that their charges would be delayed if the City were to spend its cash 2.8 million euros to such return.
The refinancing operation, approved by the board and should ratify a next full City will be held with the same Banca Mare Nostrum, for a maximum amount of 10.85 million euros, with the approval of the City, for a period 12 years with no grace period, with an interest rate of 3% for the first year and 12-month Euribor + 2.5% and an initial charge of 0.25%.
Casco Antiguo manager noted that these conditions substantially improve not only the cost of the two operations are canceled but also the situation of the municipal treasury, no longer have to return in 2015 the policy of 2.8 million euros .
With the policy and the loan will refinance during 2015 should pay 4,996,980 euros in interest and amortization;
whereas with the refinancing will be paid by these same concepts 1,157,675 euros: 3.8 million euros less.
Source: Ayuntamiento de Cartagena
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