GSD renews questions on ‘£300m mortgage’

The Government-owned company that mortgaged six public housing estates for £300 million has now filed its full audited accounts at Companies House, the GSD said last night as it called on the Gibraltar Government, once again, to explain the use of the loan.

Roy Clinton, Shadow Minister for Public Finances, said he was pleased the full 19-page audited accounts had now been filed at Companies House, replacing the single page previously filed.

But Mr Clinton added that the £300 million mortgage is “a debt of Gibraltar” and will “crush” any future Government’s ability to spend under the weight of this debt burden.

“These accounts show in detail how the housing estates have been mortgaged for 31 years at a transaction cost of £4,642,420 and that the annual rental income of £3 million representing 3,083 flats is collected by the Government and paid to the company,” Mr Clinton said in a statement.

“It also confirms that the Government underwrites the £300 million loan notes in the event of a default by the company under the terms of an option agreement that the Government will still not disclose to the Opposition.”

He added: “What I find particularly worrying is that the Chief Minster has still not disclosed what the net proceeds of £275 million are being used for as this does not come before Parliament in the Budget.”

“Indeed the only information that the Chief Minister gave in the last Budget session was that £30 million had been used to inject more capital into the Gibraltar International Bank.”

“The remaining £245 million remains unaccounted for in what can only be described as a disgraceful state of affairs and a complete lack of transparency.”