At this evenings Corporate Policy and Resources Committee Committee Cllr Richard Holmes has welcomed a proposal from the Council’s Finance Officer to repay three loans worth £2.5m generating an annual saving to council of £376,000 per year.
Break clauses in the loans allow for early repayment with no penalty. Council will use its healthy reserves to repay the loans.
“Causeway Coast & Glens is the most indebted council in Northern Ireland having inherited loans from four separate councils. This wasn’t helped by a profligate spending policy of buy now and pay later.
“We are now repaying 30 to 40 year loans, some with fixed interest rates at 15% which is crippling in terms of debt management.
“One in every six pounds this council spends is to service debt. That is not a situation that can continue and there needs to be a significant change in policy with regards future borrowing.
“Nevertheless, this reduction in debt is very welcome and will help the hard pressed ratepayers of the Borough.”