Arrecife’s Deputy Mayor and Finance Councillor, Echedey Eugenio, has announced the early repayment and complete cancellation of a €27 million loan from BBVA, taken out on 16 December 2021 to fund the expropriation of the Ginory site.
The municipality has settled the remaining €7,440,421.15, which includes €6,765,421.15 for early repayment and the final capital installment of €675,000 due by 31 December 2026. This decision puts an end to a financial obligation that has strained Arrecife’s finances for years.
Eugenio stated that this marks the “definitive closure of a historic problem that has burdened the finances of Arrecife and affected the council’s ability to invest in the city.” He emphasised the responsibility shown in repaying the debt early, avoiding passing it on to future administrations.
The Ginory land dispute dates back to 2006 after the Provincial Jury for Forced Expropriation set an initial valuation of €31 million, which the council contested. By 2010, the valuation settled at €20 million and became binding after the council failed to appeal.
In 2011, the previous owner took the matter to court due to the lack of payment in the municipal budget. The court ruled in favour of the owner in 2016, ordering the council to pay €20 million plus accrued interest from March that year.
The council noted that the €27 million loan was initiated in 2021 under the previous government led by Astrid Pérez of the Popular Party and Cristina Duque of the PSOE. It was structured for repayment until 2033.
During this current term, the council progressively reduced the loan as follows:
– 2023: €55,350 in interest and €702,675 in capital and interest.
– 2024: €2,803,081.26 in capital and interest.
– 2025: €2,792,711.26 in capital and interest.
– 2026: €2,075,562.69 in capital and interest, alongside an early repayment of €11,459,578.85, culminating in November 2026 with the full cancellation of the remaining balance.
The early repayment has allowed Arrecife to erase the €27 million debt before its due date, avoiding additional interest that would have accrued until 2033. The funds used for this were from municipal reserves and align with the council’s strategy to reduce debt while maintaining investment and public services.
Eugenio stated, “This cancellation shows that we can govern responsibly, pay our debts, and still have room to invest in community needs.” He concluded by reflecting on the long-standing disputes over Ginory, highlighting that while discussions persisted, Arrecife continued to meet its financial obligations, finally bringing this chapter to a close.
