The Undersecretary of the Treasury for Villena, Juan Jose Olivares, announced a plan to open an account at the Bank of Spain on behalf of the Villena City Council. The aim is to maximize the yield on their funds, choosing a bank option that offers better returns for public money compared with private institutions.
The council intends to contribute a substantial portion of this account. A transfer of approximately 15 million euros is planned from the treasury.
Olivares noted that the interest rate provided by the Bank of Spain will generate about 23,000 euros each month for the town hall. This amount represents a meaningful return that supports the decision to proceed with the arrangement.
Villena, with a projected budget of 27 million, plans to allocate 6.3 million to investments
With this move, the City Council shifts from paying interest to earning interest. The strategy is expected to grow the council’s funds and sustain financing for municipal projects of local importance, according to the finance leader of the PSOE-Verdes de Villena government coalition.
The treasury chief stressed that holding an account with the Bank of Spain offers numerous benefits. The arrangement strengthens direct ties between public institutions and reduces the risk exposure of commercial and private entities. The favorable rates available to public bodies further enhance the appeal of this approach.