Aberdeen joins councils raising money by selling bonds as cuts bite

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Councillors will use the three-person board to assess the state of the city’s economy in the wake of budget cuts from central government

Aberdeen city council has taken the unusual step of appointing economic advisers to assess its prospects for the bond market, as a growing number of local authorities turn to the world of high finance amid central government cuts.

Councillors in Scotland’s third largest city will get advice from three experts on the state of the regional economy, and will help the panel with the annual assessment of a credit rating from bond market agency Moody’s. Aberdeen is one of a handful of councils to raise money by selling bonds, raising £370m in November 2016 to help finance a £1bn capital spending programme.

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Related: Greece plans return to bond market as Athens sees end in sight to austerity

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view The Guardian: Economics
#public finance
#local government
#scottish politics
#aberdeen