Councils have been urged to think carefully before agreeing the paperwork that would allow them to borrow from the Municipal Bonds Agency (MBA).
In a briefing note published last week, treasury management adviser Arlingclose said local authorities should analyse alternative sources of finance and ‘carefully consider their future funding requirement’ before approving the MBA’s framework agreement.
The note read: ‘The framework agreement is relatively complex and covers the terms upon which a local authority will borrow from the MBA, including detail of the joint and several guarantee (JSG).
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