Operations such as the sale of Tiro Janer have allowed the amount owed to banks to be reduced by 6%
The Cádiz Free Trade Zone has reduced its bank debt by 6% in the first half of the year, which represents an important step in the management of the Consortium's main management burden, such as the debt inherited from previous administrations. Thus, the amount owed to the banking entities has been reduced by more than 5.7 million euros, of which 4.5 million correspond to the cancellation of the mortgage loan that had allowed the purchase of those lands intended for a commercial park, and another 1.25 million to the amortization of the rest of the loans.
The operation recently reached with Ten Brinke allowed the deed of the property for this group specialized in the development of commercial parks in exchange for 7.5 million euros, of which 4.5 million were delivered in liquid for the cancellation of the bank loan and the other three, on a plot with hotel uses that would allow its subsequent development and which they had to deliver at the end of the urbanization. This has allowed the cancellation of a significant amount of what is owed to banking entities and the restructuring of global debt, joining other measures undertaken in this same line such as the refinancing of the REINDUS debt.
In this sense, months ago the Consortium achieved significant savings of 1.4 million euros after achieving the restructuring of a first phase of the Reindus debt, to which was later added the restructuring of all its debt for projects financed by Reindus, reducing it by almost 12 million euros. With these two operations, the treasury problems that had arisen for this year and that compromised the normal functioning of the entity have been eliminated, by achieving a moratorium on the payment of the amounts owed, in addition to the reduction of the interest linked to the operation.
These achievements of the new management of the Free Zone Consortium are part of the strategy of cleaning up the accounts undertaken with a view to guaranteeing the viability of the entity and are a continuation of the line undertaken, which has allowed it to have working capital for the first time in 15 years last year, which shows that the institution is viable and that the only current burden is the debt inherited from previous managements.
Thus, a management strategy has been designed that involves a Viability Plan that has been put in place to improve and balance the financial situation and general activity of the Cádiz Free Zone and has been applied with agility so that the results begin to be noticed in this first semester and can be reflected not only in the accounts for 2021 but also in the economic activity of the entire area of influence of the Consortium, the province of Cádiz, with the consequent contribution to a necessary recovery and the job creation.
These measures contemplate, among other actions, a strong commercial boost, with a restructuring of the Area and the appointment of a director of Business Promotion and Foreign Trade, and actions in the Financial Area such as the refinancing of Reindus debts and the reduction of bank debt.