MC Cartagena says Treasury blocked €8.91M loan

According to the report dated Nov. 4, the Treasury turned down the request on Sept. 10, but the decision only came to light through the intervention office’s filing to the full council. MC says the delay shows residents were not told immediately that Madrid had closed the door on the financing.

The opposition party argues the denial confirms what it had warned when the budget was presented: the investment plan was only viable if the ministry approved the debt. It also says the city has already failed to meet the stability targets tied to its economic-financial plan, undermining confidence in local fiscal management.

For investors and lenders, the episode underscores how dependent local authorities can be on central government approval to roll over or expand borrowing. It also raises the risk that promised spending could be delayed, scaled back or reworked, with knock-on effects for contractors, suppliers and the timing of municipal projects.

MC is now pressing for Jáudenes to quit and for Mayor Noelia Arroyo to take responsibility for what it calls an unsustainable fiscal position. The next test will be whether the council can revise its financing plan without the blocked loan, or whether the budget must be reshaped around lower investment spending.