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Accounts Court vetoes loan to Lagos
The “Tribunal de Contas” (public accounts court) has refused the request from Lagos council for a 1.9 million euro loan, saying the municipality has “exceeded its debt limit” already.
Edition 711 (12 Jan 2012), 
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“The borough council has exceeded its legal capacity for debt – which means it is impossible to get any further loans,” Lagos Mayor Júlio Barroso (PS) told Lusa press agency.
The loan had been agreed by a PS majority back in 2011 – with PSD councillors voting against it, claiming the council would be saddled with “prohibitive interest payments”.
Now that the public accounts court has vetoed the loan with BBVA (“Banco Bilbao Vizcaya Argentaria”), Barroso says income has been falling drastically.
The loan “would have given a margin of manoeuvre, a certain balance” but now, he says, “it is difficult” to honour certain debts with suppliers…
