PWLB changes and local authority creditworthiness
David Green asks whether new borrowing rules should prompt lenders to reassess the risk of doing business with councils. There are two main reasons why an organisation might default on[…]
David Green
Statutory overrides: extend or make permanent, but do it soon
David Green writes that the alternative to extending statutory overrides will be “no good for local or central government, nor their taxpayers”. Local authorities are drawing up their revenue budgets[…]
David Green: Taking a ‘balanced view’ of borrowing
Long-term fixed rate loans may be low risk but, argues David Green, the lowest risk comes with a portfolio including a “decent proportion” of short-term borrowing. A recent Room 151[…]
David Green: Treasurers face a ‘future quite different from the past’
The summer is nearly over. David Green writes that treasurers can look forward to a conclusion on the PWLB consultation, government action on commerical investments, the impact of negative interest[…]
No shortage of borrowing options should the ‘PWLB tap be turned off’
PWLB borrowing may be blocked, but there are other ways to access credit. David Green surveys the options. As the consultation on PWLB future lending terms draws to a close,[…]
PWLB consultation: A ‘sledgehammer’ to the foundations of borrowing
The future lending terms of PWLB is under review with the possibility of a ban on borrowing for commercial investment on the horizon. David Green argues some “fundamentals” need resolving[…]
How to be a smart borrower
An increase in PWLB rates has seen treasury officers deluged with offers of credit from the private sector. David Green writes local authorities should take care with the money they[…]
Lender of last resort: making sense of the PWLB rate rise
The government has finally lost its temper with ever increasing borrowing by local authorities and has added 1% to Public Works Loans Board interest rates. Anecdotally, much of this recent[…]
David Green: IFRS 9 checklist
Now that local authorities are in the middle of preparing their first financial statements under the new IFRS 9 Financial Instruments accounting standard, here’s a reminder of what might need[…]
Wake up and smell the coffee: IFRS 16 is a major change
Councils who think they won’t be subject to new accounting rules on leases are in for a rude awakening, says David Green. One of the first things anyone analysing financial[…]
