Spanish municipalities Lorca and San Andrés del Rabanedo reduce municipal debt

Spanish municipalities Lorca and San Andrés del Rabanedo have reported significant progress in reducing municipal debt and improving financial stability.

In Lorca, the city ended the 2025 fiscal year with a municipal debt of 23.07 million euros, a decrease from 31.7 million euros in 2022. Mayor Fulgencio Gil Jódar reported that the debt-to-indebtedness ratio fell from 43.17% to 23.91%, marking the city's best performance in over two decades. The municipality also recorded a treasury surplus of 8.4 million euros and a net savings of nearly 8 million euros.

San Andrés del Rabanedo has approved a budgetary modification to allocate 13.9 million euros toward debt amortization. Mayor Ana Caurel stated this move is a “key and historic” step to improve the municipality's financial situation. The initiative aims to reduce the debt ratio from over 170% at the start of the current mandate to a projected 86% by the end of 2026, well below the legal limit of 110%.