The efforts carried out with the Ministry of Industry have allowed the modification of the repayment schedule as well as the reduction of the interest rate on these loans
The debt, inherited from previous administrations, represents a significant burden that impacted the income statement and the treasury.
The Cádiz Free Trade Zone has achieved significant savings of 1.4 million euros thanks to the restructuring of the debt of 39 million euros contracted by Reindus loans. This amount owed to the Ministry of Industry for the purchase of the Altadis land is one of the actions inherited from previous administrations and that was weighing down the Consortium's accounts the most.
After several efforts in this regard before the General Directorate of Industry, the current management team of the Free Zone managed to get the refinancing of the debt approved weeks ago, both in the repayment schedule, which will be more lax for the Consortium and will allow it to face payments more easily; as in the interest rate applied, which was generating an additional financial burden on the debt itself.
This new calendar allows, therefore, to resolve possible treasury deficits that were going to arise in the current year, so that a substantial improvement in the solvency and liquidity of the Cádiz Institution has been obtained.
At the same time, the Consortium is working to achieve the restructuring of the oldest part of the Reindus debt, the management of which has already passed from the Ministry of Industry to the Treasury Delegation with the aim of increasing solvency and financial savings, which is why it is taking the corresponding steps to request a new loan repayment schedule, just as it has done with Industry, starting with the cancellation of the oldest files. old, which would mean a reduction in debt of about 11 million euros.
Another important point that is being worked on is the reduction of financial expenses. To this end, the Free Trade Zone will intensify its contacts with financial entities in this first half of the year to cover the restructuring of bank debt, also inherited from previous administrations.
The intense work carried out to restructure the debts and their impact on the accounts indicates that the Sanitation Plan implemented by the current management is bearing the desired results and this has already been reflected in the audited accounts for 2019 that were presented to the last Plenary Session held this month but will be felt even more in the coming years in which the increase in turnover and budgetary stability and financial sustainability will be consolidated.