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FOI - Inter authority borrowing / lending [May 2024]

Key information

Request reference number: MGLA080524-2655

Date of response:

Summary of request

Request:

For each individual loan taken by the GLA:

1. The local authority/lender name

2. The amount advanced (the initial amount)

3. The outstanding balance

4. The interest rate 


5. The settlement date (the date the loan was agreed)

6. The agreed maturity date (the date on which the loan is set to end)

 

Response:

The GLA manages some cash for two entities, to allow them use of the GLA’s deeper treasury management resources:

  • The Old Oak and Park Royal Development Corporation (OPDC)
  • The London Waste and Recycling Board (LWARB), now known as ReLondon.

The most efficient way for the GLA to account for the cash managed on behalf of these closely related organisations, is to treat the money as borrowing via loan agreements.

The table of loan details is shown below:

Local authority / lender name Amount advanced (the initial amount)
01/04/2023
Outstanding balance
31/12/2023
Interest rate Settlement date 
(date the loan was agreed)
Agreed maturity date (date loan set to end)
The Old Oak and Park Royal Development Corporation (OPDC) 21,900,297.58 63,341,764.61 Variable - SONIA 26/04/2019 30 days notice
London Waste and Recycling Board (LWARB) (Re London) 6,024,352.37 3,550,855.06 Variable - SONIA 27/10/2016 30 days notice
    66,892,619.67      

The loans run from 01 April to 31 March each year with either party being able to terminate agreement by giving 30 days notice, however the loans are callable and the balance varies over the year as cash is, in effect, deposited or withdrawn. Please note the interest rate for both loans is the sterling overnight index average (SONIA), which changes daily and is available via the Bank of England’s website. The average for the year was 5.04%.

 

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