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Vila-real Approves Credit Modification to Settle 5.9 Million in Invoices

The City Council greenlights a fund injection to pay outstanding debts to suppliers and staff.

Facade of a Mediterranean town hall with wrought iron balcony, afternoon light.
IA

Facade of a Mediterranean town hall with wrought iron balcony, afternoon light.

The Vila-real City Council has approved a 5.9 million euro credit modification to settle pending invoices with suppliers, mainly from 2025, and cover personnel expenses.

In an extraordinary and urgent plenary session held this Friday, the council has given the green light to a credit modification that will allow for the settlement of approximately 5.9 million euros in outstanding invoices, most of which correspond to the 2025 fiscal year and some from previous years. As explained by the mayor, José Benlloch, as of December 31, 2025, there was a debt to suppliers of 8.2 million euros. Of this amount, 2.3 million had already been incorporated through a mayoral resolution dated May 7 and can be paid within approximately 15 days.
The publication of the approval in the Official Provincial Gazette (BOP) for 15 business days is the first step. Subsequently, the invoices will go to the Plenary for final approval, at which point the Treasury can be ordered to make the payment. The modification approved today also allocates just over 2 million euros to personnel matters.
The delay in payments to suppliers is due to a confluence of circumstances. The late approval of the municipal budget and its execution in a context of high inflation strained economic management. Furthermore, technical observations from the Intervention department warned of the need to guarantee income linked to the Generalitat's program contract and regional and provincial cooperation funds, amounts exceeding four million euros. However, the main problem was the collapse of the budgetary office during the last quarter of last year, a key period for invoice processing.
On the other hand, an initial approval has been given to a credit supplement expediente worth 3,528,246.4 euros from the 2025 surplus. According to regulations, this amount must be used to reduce net debt. The government team laments that, due to the previous management by the PP and the urbanistic legacy, numerous court rulings have had to be paid, increasing the municipal debt. Nevertheless, savings derived from debt amortization, close to 850,000 euros, can be allocated to investments for Vila-real's progress.
Finally, approval has been given to the detailed study project for the construction of a building at the intersection of Ducat d’Atenes and Jaume Roig streets. The project includes 30 homes, a basement, commercial premises, and garages. Mayor Benlloch highlighted that the project seeks new urban development formulas to adapt to citizens' needs, emphasizing the council's concern for housing.

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