Wednesday, 31 January 2018

Should we be worried ?

I am reading C&RT have basically borrowed via bonds 100 million pounds in January and will be doing the same later in the year for a further 50 million. They also agreed a rolling credit agreement with RBS in the recent past for 25 million pounds

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 !!


Quaysider said...

YES - this is a worry...especially given that we're about to start our live aboard holiday experience which will rather depend on there being WATER in the ditches and gates that work etc. Many that have left the canals already have said to me they saw it coming - hence their decision to "leap".

Nev Wells said...

It does concern me, especially as one thing you see the longer you live is cycles of change, meaning the canals (or some) will drop back into disrepair due to lack of use resulting in ‘justification’ to close them .... I think those who are giving up are not doing the system any justice. We need boats moving, and I think Cart will pressure the cc’ers who travel the system by increasing their license costs to stop them travelling or reduce the numbers of the really serious travellers. Not panicking just a bit sad.