The Mogán City Council has paid off a €15.5 million loan early, formalised in 2022, achieving a saving of €924,174 in interest. The debt, linked to the expropriations of Plaza Negra and the David Jiménez Silva Sports Complex, was settled four years after its signing.
The Mogán City Council has completely eliminated its financial debt after early cancellation of the loan taken out in October 2022, which amounted to €15,543,405.13. The operation, carried out in several phases, has allowed the Council to save €924,174.99 in interest that would have been payable had the loan remained until its original maturity, scheduled for 2037.
The loan was intended to cover the financial obligations arising from the expropriations of two key infrastructures in Arguineguín: Plaza Negra and the David Jiménez Silva Sports Complex. It was formalised with a quarterly amortisation system at a variable rate, consisting of the quarterly Euribor plus a margin of 0.467%.
The early cancellation was made possible thanks to three significant repayments made by the Council. The first, in January 2024, for €4,498,654.05; the second, on June 16, 2025, for €8,878,157.50; and the third, on July 10, 2026, for €1,240,586.74. With these operations, the Council managed to reduce the outstanding capital until it was fully settled eleven years ahead of schedule.
The Councillor for Finance, Ernesto Hernández, explained that the good economic results of recent years have been key to making early payments. Additionally, the City Council agreed with the banking entity a 0.00% commission for early repayment, which avoided any penalties. "Thanks to the responsible management of municipal accounts, we have been able to free the municipality from a significant financial burden and save residents nearly a million euros in interest," Hernández stated.
This saving, according to municipal sources, can be allocated to other investments or public services in Mogán, directly benefiting the citizens. The cancellation of the debt represents a milestone in the economic management of the Council, which in just four years has managed to balance its accounts and eliminate a liability that extended until 2037.
The original loan, with a variable interest rate linked to the Euribor, would have generated increasing financial costs had it remained until maturity. The decision to repay it early, at no additional cost, has allowed the City Council to avoid that extra cost and improve its financial health.
The residents of Mogán, especially those in Arguineguín, where the infrastructures that motivated the loan are located, are the main beneficiaries of this operation. Plaza Negra and the David Jiménez Silva Sports Complex are public-use facilities that are already operational, and the elimination of the debt associated with their expropriations consolidates their future viability without economic burdens.
The Mogán City Council has emphasised that this cancellation does not affect other financial commitments or the provision of municipal services. On the contrary, by reducing financial expenses, resources are freed up that can be used to improve infrastructures, social services, or new investments.
With this operation, Mogán positions itself as one of the municipalities in the Canary Islands with the lowest financial indebtedness, granting it greater flexibility to undertake future projects without relying on bank loans.
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