Financing the MEA

Consider the following:
 Third party loans taken out by the MEA are reflected in the Pink book - currently £185m at
5.375% and £75m at 5.625%
 There are lot of individuals and companies on the island with cash savings on which they are
making just about zero return
 The Government is making pretty much zero tax revenue from interest income
 Why not refinance the loans at 4% using an IoM crowd funded loan. You would also need to
ask a local broker to provide a matched bargain exchange for loan notes which could be
simply financed through a dealing fee
 Saving of £2,543,750+£1,218,750 = £3,762,500 per annum
 Increased revenue of £2,080,000 assuming all taxed at 20%
Idea received via email - Site Moderator

Why the contribution is important


As above.


by MelindaIOMGov on May 16, 2017 at 01:50PM

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