San Lorenzo councilors approve G. 15 billion loan to cover cash deficit

The Municipal Council of San Lorenzo has authorized a G. 15,000 million loan to address a temporary cash deficit, a decision backed by Mayor Felipe Salomón and a majority of council members. The measure, however, faced opposition from three councilors who voiced concerns about the municipality's escalating debt.

Council members Isaac Rojas (PLRA), Luz Bella (PLRA), and Nicolás Verón (Independent) voted against the loan. Verón argued that the municipal administration continues to rely on borrowing without delivering significant improvements for citizens. He estimated that this latest financial operation would push the municipality's accumulated debt to approximately G. 100,000 million.

Verón further pointed out persistent issues such as poorly maintained streets, unfinished construction projects, and projects that have not been completed under the current administration. "The lack of management cannot continue to be financed with more debt," he stated following the session.

Rojas, another opposing councilor, questioned the timing of the loan request. He explained that such loans for temporary cash deficits are typically processed between January and February and settled within the same fiscal year. However, this loan is being secured mid-year and will likely be paid back in the next budget period. Rojas suggested that the funds, intended for cash deficits, would realistically be used for current expenses, salaries, and some pending works.