European Investment Bank borrowing

Meeting: 
MQT on 2015-09-16
Session date: 
September 16, 2015
Reference: 
2015/2785
Question By: 
Tom Copley
Organisation: 
Labour Group
Asked Of: 
The Mayor
Category: 

Question

With reference to your response to question 2015/2247, how would money borrowed by the GLA-family from the European Investment Bank be affected by the UK exiting the European Union?

Answer

Answer for European Investment Bank borrowing

Answer for European Investment Bank borrowing

Answered By: 
The Mayor

The loan contracts already existing (including forward commitments, where contracts have been signed and rates fixed but proceeds not drawn down) are not contingent on continued UK membership. However, such an event would be likely to preclude further access to this source of finance and may reduce any non-contractual flexibility to negotiate restructuring of the existing loans. This scenario has been considered by the Group's treasury management specialists when analysing our borrowing risks.