The Treasury warns of financial pressure due to the payment of the northern loan
Toledo will conclude 2026 with sufficient liquidity to meet all of its payments, but must do so “extremely cautiously” due to the strong impact that North Nude’s forfeiture payments will have and the extensive use of the remaining treasury as a financing instrument. This is clear from the Treasury and Financial Sustainability Report prepared by municipal technicians.
The city council will start 2026 with a cash balance of €35 million, but in January it will face immediate expenses of €10.13 million equivalent to paying the North Nude expropriation agreement, funded from the rest of the Treasury. The report warns that this operation “profoundly affects the city council’s financial position,” to which a further “yet to be determined” amount will be added in the following months for the same urban conflict dating back to 2008.
Thus, the report shows that this initial pressure will significantly reduce the Council’s liquid funds before the start of the regular financial year.
On the other hand, the Treasury expects an income of 105.6 million, of which 102 million corresponds to non-financial income and 3.49 million to the loan that the City Council intends to arrange for investments in various areas, such as the construction of the large center in the Buenavista neighborhood, among other projects. In response to this, the city council will make payments of $115.8 million.
With these inflows, the cash closing forecast at the end of next year is 12.6 million, a figure that could improve to 15.6 million if pending capital grants are finally received to fund the investments already undertaken by the City Council.
Extensive use of the rest
One of the strongest warnings in the report focuses on the extensive use of the remaining treasury. The treasurer notes that this tool, used to fund credit adjustments and face the $1 million payment for North Nude, puts the City Council “in a financial position in which it must be very careful.”
Along these lines, the document emphasizes that the remainder as a source of financing must be used in a very restricted manner during 2026 if we are to maintain future stability.