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WQ.290/2022
WRITTEN QUESTION TO THE MINISTER FOR TREASURY AND RESOURCES
BY DEPUTY T.A. COLES OF ST. HELIER SOUTH
QUESTION SUBMITTED ON MONDAY 14th NOVEMBER 2022 ANSWER TO BE TABLED ON MONDAY 21st NOVEMBER 2022
Question
“Will the Minister state whether the money borrowed through the Revolving Credit Facility, in response to Covid-19, was borrowed at a fixed rate; and, if so, at what rate and for how long?”
Answer
The interest terms of the Revolving Credit Facility (‘RCF’) were linked to a floating rate known as LIBOR (London InterBank Offered Rate) at the time the RCF was originally put in place. During the term of the facility LIBOR linked borrowing facilities have been legally required to transition to the replacement floating rate known as SONIA (Sterling OverNight Index Average).
The total interest cost is a combination of the SONIA rate (2.9266% on 17th November 2022) plus a margin which is negotiated with banks in a commercial manner and is protected by the confidentiality wording within the RCF agreement.
The interest terms apply from when the RCF was originally put in place in May 2020 until the expiry date in May 2023.