Albufeira municipal authority has announced that it has cut €18 million from its debt in the past year-and-a-half, due mostly to reduced loans from the PAEL programme and the cancellation of further loans which were being planned alongside commercial banks.
Announcing the achievement in a press release, the authority went on by stressing the municipality’s rigorous management which focused mainly on cost reduction.
“The financial balancing was achieved through rigour, efficiency, rationality and realism,” the municipal authority declared.
As a result, Albufeira is now able to financially cope with its short and medium-term debt without external assistance – which is why the municipal authority cancelled the loans which were being agreed upon and accounted for over €10 million.
The municipality will continue working according to the PAEL programme nonetheless. The programme, aimed at providing economic support to local economies, came into effect in Albufeira on October 2012, to aid the municipality in paying off its indebted suppliers.
