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  1. #1

    Default Why is Auckland council borrowing huge money offshore?I'm worried about the HUGE DEBT

    I read recently that council had sent several council officers overseas to source large funding on the big projects happening in Auckland.
    Why are they looking offshore? Are interest rates lower from other countries compared to NZ?Would this be a first time Auckland council are doing this ?

    Im worried about the huge debt Len Brown is chalking up for all of us !!

  2. #2

    Default

    Quote Originally Posted by mrsaneperson View Post
    Why are they looking offshore? Are interest rates lower from other countries compared to NZ?
    Yes, it is.

    I own some of the Akl Council debt.
    They pay me 6.52% pa; with still over 4 years to run.
    Better than tying up money in a bank ....IMO.

  3. #3

    Default

    Quote Originally Posted by speights boy View Post
    Yes, it is.

    I own some of the Akl Council debt.
    They pay me 6.52% pa; with still over 4 years to run.
    Better than tying up money in a bank ....IMO.
    Can you elaborate?

  4. #4

    Default


    https://nzx.com/markets/NZDX/bonds/AKC050


    When issued the coupon (interest rate) was 6.52% ....fixed till maturity.
    You can't buy it at that now of course.....about $112 to buy $100 (includes six months accrued interest)

    This is one of 6 Akl Council bonds that are listed on the NZDX.

  5. #5
    Join Date
    Oct 2005
    Location
    Auckland, NZ.
    Posts
    621

    Default

    Quote Originally Posted by mrsaneperson View Post
    I read recently that council had sent several council officers overseas to source large funding on the big projects happening in Auckland.
    Why are they looking offshore? Are interest rates lower from other countries compared to NZ?Would this be a first time Auckland council are doing this ?

    Im worried about the huge debt Len Brown is chalking up for all of us !!
    We need a basic underground system - can take an hour to get from bottom of queen street to Krd.

    And transport to Auckland aiport is an international joke.

  6. #6
    Join Date
    May 2008
    Location
    Manukau Auckland
    Posts
    1,049

    Default

    Quote Originally Posted by SwissKiwi View Post
    We need a basic underground system - can take an hour to get from bottom of queen street to Krd.

    And transport to Auckland aiport is an international joke.
    SK,

    Agree with you. Auckland needs to spend now on some public transport projects like the 2 you mention. Can you imagine Auckland traffic problems in 20 or 30 yrs when Auckland adds another 1 million residents? Bloody nightmare.

    Shane

  7. #7
    Join Date
    Sep 2007
    Location
    Auckland
    Posts
    8,321

    Default

    But why are we getting these extra 1 million people? Who says or has decided this is the way to go? That's what I want to know.
    Squadly dinky do!

  8. #8
    Join Date
    May 2008
    Location
    Manukau Auckland
    Posts
    1,049

    Default

    Quote Originally Posted by Davo36 View Post
    But why are we getting these extra 1 million people? Who says or has decided this is the way to go? That's what I want to know.
    Davo,

    New immigrants and young people from regional towns gravitate to Auckland for the better job, study and living opportunities? Its a natural phenomena that is being repeated around the world. No one decided this is the way to go...it just happens.

    Shane

  9. #9

    Default

    The reason they are borrowing now at such huge levels is the spending is hidden from those that are voting. Cheap money and a bias towards capitalising everything equals no immediate rates increases. This in turn means they keep their jobs and hide their mistakes. They are busy capitalising what used to be OPEX and future generations and voters will pay. Sure capitalise infrastructure projects, but the dirty secret is they are funding operations with this money as well.

  10. #10

    Default

    Even with the new planned train set, population growth will outpace other infrastructure's ability to cope.

    Chaos on Auckland motorways
    Central Auckland was in traffic meltdown tonight after a major accident sent the city into gridlock.
    Traffic on both the Northern and the North Western was earlier at a standstill, while Queen Street, Ponsonby Road, Symond Street and Karangahape Road was barely moving.
    One motorist reported an hour and a half drive from the High Court in the city to K’Road – a trip that usually takes about 10 minutes. A bus trip along Ponsonby Road is currently taking an hour.
    www.stuff.co.nz/national/8396162/Chaos-on-Auckland-motorways


 

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