National looks to trim local body borrowing costs

A new local government funding agency is being established to reduce borrowing costs for councils. A bill to set the agency up is expected to be introduced to Parliament shortly.

The New Zealand Local Government Funding Agency was an idea that came from the Government's Jobs Summit two years ago. It will operate as a large-scale borrower that will then re-lend to councils. Councils borrowing through the new agency expect to pay lower interest rates than councils borrowing on their own.

More information: http://www.beehive.govt.nz/release/new-agency-trim-local-body-borrowing-costs