Cardiff to increase borrowing
0Cardiff’s Treasury Management Statement published last week showed a gap of £218m between its projected capital financing requirement in 2023/24 and its funding plans as set out in its budget report.
The statement also said that the borrowing requirement would rise if further projects such as a proposed indoor arena are approved.
Cardiff says it will need to borrow a minimum of £15m in external funding for 2019/20, and more in following years.
The council has not set specific borrowing targets but will aim to keep internal borrowing to around £80m throughout this period, subject to balance sheet capacity and future interest rate forecasts, leaving the difference to be plugged from external sources.
The PWLB remains the council’s preferred source of long-term funding.
It qualifies for the PWLB’s ‘Certainty Rate’, which is 20bp below its Standard Rate.
