Although it reached record levels, the public debt of Madrid started to reduce

Economy Nilgun Salim
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The Madrid City Council reduced its debt to €4,563 million in the second quarter of 2016.

The report, published Thursday by the Bank of Spain, showed that the debt of the Spanish capital dropped with 19% in the same period of the last year and the total amount was € 5,637 million.

According to mayor Manuela Carmena the total debt was reduced with €1,074 million.

However, the impressive reduction does not change the fact that Madrid is  the most indebted city in Spain.

The region ended June with a debt of €29.439 million, the biggest amount since 2000.  The Community of Madrid is the fourth most indebted autonomy, after Catalonia (74,757,000), Valencia (43,164) and Andalucía (32,551).

However, the Community of Madrid is the autonomy with the lowest percentage of debt to regional GDP, with a rate of 14.2% percent.

In the last two years, the Spain was the ‘superstar’ when it to any economical matter.

The kingdom became the ‘victim’ in one of the worst banking and house price collapse in the Eurozone became the fastest growing economy, expanding by 3.2pc and 2.5pc respectively, according to the International Monetary Fund.

The massive debts began to increase after Alberto Ruiz-Gallardon was elected mayor in 2003. During his two terms of eight years, Gallardon increased the debt rate from €1,455 million to €7,366 million (50%), due to his monumental construction and infrastructure projects.

According to Spanish media, with mayor Manuela Carmena on board, the massive debt will continue to drop in the two next years.