Interest-free loans so that councils can finance the contribution to the Feder plans

The Ministry of Finance and Public Administration of the Xunta de Galicia approved the order of September 1, 2026, establishing the regulatory bases and calling, for the 2026 annual period, a line of interest-free loans in favor of Galician councils to finance the municipal contribution corresponding to the integrated action plans funded by the European Regional Development Fund (ERDF) in the 2021-2027 programming period. The regulation was published in the Official Gazette of Galicia (DOG) number 168, of September 4, 2026, page 48003, with the procedure code FA501A.

The line allocates a total credit of 20,370,709.33 euros, charged to budget application 23.01.811C.82160 of the general budgets of the Autonomous Community, with a multi-annual distribution over five annual periods. Management is the responsibility of the General Technical and Treasury Secretariat, the body that will process the files, verify the requirements, and control the reimbursement of the operations.

Beneficiaries and demographic priority

Beneficiaries may be the councils of Galicia that simultaneously meet several requirements, including having a population of fewer than 20,000 inhabitants according to the official figures in force on the date of publication of the call. The order reserves a first application period for these municipalities and provides for a second period, conditional on the existence of available credit, for councils with between 20,000 and 30,000 inhabitants.

• Be part of a functional urban area or be selected as an intermediate city in the state resolution for the allocation of the ERDF financial path.
• Have to assume an own municipal contribution or co-financing not covered by ERDF funding.
• Comply with applicable regulations on indebtedness, budgetary stability, and financial sustainability.

Financial conditions and amortization

The loans will have an ordinary interest rate of 0 percent and may cover up to one hundred percent of the municipal contribution corresponding to the plan or the part of it for which financing is requested. The amortization of the principal will be carried out in three equal annual installments, maturing on November 30 of the 2031, 2032, and 2033 fiscal years, and total or partial early amortization is permitted without penalty.

The granting will be processed under a non-competitive concurrence regime, in order of entry into the electronic registry once the applications are complete, until the credit is exhausted. Applications must be submitted electronically through the electronic headquarters of the Xunta de Galicia, and the submission period for the first group will be fifteen business days from the publication of the order.

Guarantees and control

To ensure repayment, the order incorporates guarantee mechanisms through retention in the Local Cooperation Fund, in accordance with the express authorization that must be stated in the municipal agreement and the corresponding financing agreement. The councils must provide, among other documentation, the certification of the plenary agreement, an explanatory memorandum, the report from the local Comptroller (Intervención), and the commitment to include the amounts of the planned annual installments in the budgets of the following fiscal years.

The resolution of the procedure corresponds to the head of the Ministry of Finance and Public Administration, with a maximum period of one month to resolve and notify, and the effectiveness of the favorable resolutions shall be delayed until the signing of the agreements. The order, signed by the minister Miguel Corgos López-Prado, enters into force on the day following its publication in the DOG.

This line seeks to remove a financial obstacle that could condition the effective deployment of sustainable urban development actions already prioritized within the state framework, reinforcing the execution capacity of smaller Galician municipalities and guaranteeing the absorption of available European funds.

Source: Official Gazette of Galicia, no. 168, September 4, 2026, section III (Other provisions), p. 48003 (official reference: CVE-DOG ozvijuo2-8z59-nej3-kds8-v2tgq3lyo6r5).