Vol. 500 No. 2
152 Mrs. T. Ahearn asked the Minister for Finance the interest paid on the local loans fund which provides funds to local authorities to enable them to advance loans to individuals, in particular the loan which gave rise to the small dwellings acquisition mortgage; and if he will make a statement on the matter. [3755/99]
In 1998, interest amounting to £25.8 million was paid to the local loans fund by local authorities in respect of borrowing from the fund. In addition, the local authorities also paid interest of £14.9 million to Ulysses plc, a special purpose vehicle company established in the context of the securitisation of local authority mortgages in 1995 and 1996, in fulfilment of contractual obligations to that company. While the bulk of the interest paid would relate to borrowings by the local authorities from the local loans fund which were used by the authorities to fund mortgages advances, some 10 per cent of local loans fund advances were used for other purposes.
