The revolving credit facility allowed for up to £25m to be borrowed by C&RT for periods between one month and the date of the facility’s expiry in June 2019. The RCF has a rate of interest 1.75 per cent above London Interbank Offered Rate (LIBOR).
C&RT did not make immediate use of the RCF. It was not until the 2016/17 financial year, when the amount that could be drawn down was doubled to £50m, that it acted. C&RT borrowed the whole amount. £10m for repayment in June 2017 and a further £40m for repayment in April 2019.
C&RT also has a loan of £13m inherited from British Waterways. When BW became C&RT, its few debts were written off with the exception of £13m owed.
Now I am a simple soul and borrowing money to pay back borrowed money is a bad strategy. If I were in this position I'd look to see where my spending was going and curb that, or adjust my budgets, short, medium and long term to fit my income.
There is only one outcome here, massive cuts down the line when these debts are due, and the people making the loans will be long gone... it does sicken me that they think we Joe public can't see this ??
I love the canals but they are going to get less and less as the cost to maintain them cannot be met so the likes of the Caldon and northern canals will just get closed and be left as cycling walking and fishing venues and not boating !!