DECEMBER 2, 2021 SUBSCRIBE NEWS BLOGS CONTACT US Trending DECEMBER 1, 2021 1 MIN READ Debt refinancing deal will deliver a boost of up to £15.8 million for services Liverpool City Council has concluded the refinancing of £65m of debt, which is projected to save £15.8 million in repayments and shave 26 years off the loan term. The previous LOBO (Lender’s Option Borrower’s Option) arrangement had an average rate of 4.4% over 44 years. It has now been replaced with a new funding package from the Public Works Loan Board, at an average rate of 1.73% over 18 years. A portfolio of shorter-term loans have been taken out to cover the premium costs of terminating the previous deal. Deputy Mayor and Cabinet member for Finance and Resources, Councillor Jane Corbett, said: “One of the things we are trying to do to mitigate the impact is to reorganize our finances to make efficiencies, rather than cutting services. “It is a bit like renegotiating your mortgage deal with a different lender to get a cheaper interest rate. “What it means is we can use the savings to support frontline services. “That is more important than ever at this time as we seek to protect the most vulnerable in our city.” The council was advised on the deal by Treasury advice firm, Arlingclose. Director David Blake, said: “Where we find banks willing to negotiate on prepayment terms local authorities can unlock significant value, removing lender’s options is a sensible way to reduce risk.” Share Related Funding for targeted support for vulnerable young people at risk of crime and violence BLOG: How we’re eliminating HIV in Liverpool Liverpool case of Omicron identified Jimmy McGovern and 97th Hillsborough victim nominated for Freedom of Liverpool Copyright Liverpool City Council - All rights reserved