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Granada seeks to refinance 70.8 million to exit Adjustment Plan

The City Council initiates procedures to consolidate two loans and eliminate the economic intervention that has weighed on the city since 2012.

Facade of the Granada City Hall with ornate balconies and iron railings, bathed in warm afternoon sunlight, with a clear blue sky above.
IA

Facade of the Granada City Hall with ornate balconies and iron railings, bathed in warm afternoon sunlight, with a clear blue sky above.

The Granada City Council has begun the process to request the refinancing of 70.8 million euros in outstanding loans from the Ministry of Economy, aiming to exit the Adjustment Plan and the economic intervention affecting the Consistory since 2012.

The governing team of the Granada City Council has taken the first step to request the Directorate General of the Treasury and Financial Policy, under the Ministry of Economy, to refinance the two loans the city holds with the Local Entities Financing Fund. These loans, signed before 2023, total 70,896,195 euros, and their consolidation into a single operation would allow the Consistory to leave the Adjustment Plan and the economic intervention it has been under since 2012.
The first loan, formalized in 2019, amounts to 35,317,812.18 euros with an interest rate of 0.156%. The second, granted in 2023 by the previous municipal corporation, is for 35,578,383.33 euros at a rate of 3.273%. Both allow for voluntary early repayment, facilitating their replacement by a new, financially equivalent operation.
As a prior requirement, the mayor of Granada, Marifrán Carazo, will present the 2025 Municipal Budget liquidation report to this Friday's plenary session, which includes all municipal autonomous bodies. This step is crucial for accessing the new financing, along with other requirements such as having an approved budget, positive net savings (31.6 million euros), maintaining the average payment period to suppliers below 30 days, adhering to budgetary stability and financial prudence, and not exceeding 110% of debt relative to current income.
The mayor expressed her satisfaction at the prospect of the city no longer being under intervention, stating that Granadans "will notice it positively in their daily lives." According to Carazo, "A City Council that progresses in improving its accounts and without intervention will allow us to improve public service contracts, invest in new projects, and decide autonomously on our city's project, without the oversight of the Central Government."
The refinancing offer consolidates both loans into a single operation of 70,896,195 euros over eight years, with a variable interest rate (12-month Euribor plus 0.17%), with no opening or early cancellation fees. However, the operation requires prior authorization from the Regional Ministry of Economy and Finance of the Junta de Andalucía and the Directorate General of the Treasury and Financial Policy.
Carazo emphasized that this operation is the result of "rigor and compliance" in managing municipal accounts. "Ceasing to be an economically intervened city is an objective we have pursued decisively and responsibly," she stated, attributing the achievement to the citizen "stability" and "support" that allows governing with "horizon, criteria, and making responsible decisions."
The councilor stressed that the financial improvement was achieved without increasing the tax burden, through more efficient resource management, expenditure control, and elimination of superfluous items. The City Council currently meets all legal requirements, including an approved 2026 budget, positive net savings of 31.59 million euros in 2025, a debt level of 44.81%, and an average payment period to suppliers of 28.11 days as of December 2025.
The Consistory noted that this operation ends the "precarious economic situation" inherited, specifically mentioning a loan of 35.57 million euros signed in April 2023 by the then socialist mayor Paco Cuenca, an operation that, according to the current government team, "significantly worsened the situation."

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