Oh no it’s a LOBO!

LOBO Loans news at Wirral Council. A foreseeable and avoidable £300 million debt is hanging over Wirral council tax payers. How much of your council tax is being used to pay these off at HUGE rates of interest? How many jobs have been cut and services farmed out as a result? How many senior officers have prospered and are doing fine on the back of their own personal failure? ONE…. Mr Ian Coleman, now departed.

Wirralleaks

Image result for debt resistance ukImage result for Debt Resistance UK

With all this Labour Party conference talk of Private Finance Initiative ( PFI) schemes we thought we’d turn our attention to the Local Authority (LA) equivalent of the never-never and and return to an old story concerned with LOBO loans.

LOBO-tomy Loans

For those unfamiliar with the concept -although you might not know you’re paying through the nose for one –  a LOBO stands for Lender Option Borrower Option.

The Lender Option means that periodically the lender can impose a new interest rate.

The Borrower Option is to agree to new interest rate or pay loan back in full.

However if the local authority chooses to pay the loan back in full there are punitive ‘break penalties’ which can cost the local authority (and more specifically the council taxpayer) an arm and a leg.

Last night’s Audit & Risk Management Committee confirmed that Wirral Council have taken out a LOBO…

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About Wirral In It Together

Campaigner for open government. Wants senior public servants to be honest and courageous. It IS possible!
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2 Responses to Oh no it’s a LOBO!

  1. Bobby 47 says:

    The LOBO liability down here in Hereford is around one hundred and thirty million quid. Whatever the actual figure is I know that ‘we’ are paying seventeen million every year to service the debt.
    The local Council leader, who recently didn’t claim he was abducted by aliens that then may have appeased me and have gone some way to justifying this fiscal madness, explained the borrowing was good governance and best practice and that borrowing was a responsible fiscal policy.
    My Council leader? A former Tory Banker who’s evolved into a moustacheod cravat wearing, glad handed, happy to greet and meet you type who, when pressed by me to explain his role in the never ending tale of woe concerning Gagging Payments and the bullying of a Council Whistleblower explained, ‘I know nothing’, which, if he had been abducted by aliens and had his brain wiped clean, may have left me happy and satisfied with his candid disclosure.
    We’re all doomed Cardin. God help us old friend. My warmest regards to you and yours. Rob.

    • Welcome back Bob. Great to hear from you again. While you were quiet, I began work on a far-fetched novel featuring dying worlds and psychopathic aliens. Nothing as outlandish or incredible as how senior public servants manage to breeze along above the law and always beyond the clutches of PC Plod… but it’s going well and I’m going to send you an email soon :))

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