City council explains £21m debts

http://news.bbc.co.uk/go/rss/-/1/hi/northern_ireland/7748838.stm

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Derry City Council has been explaining why it has debts of £21m.

On Tuesday, it was revealed that councils in Northern Ireland owed almost £400m and that services may have to be cut due to falling revenue.

Derry owes £21m, £1m more than Belfast, which is Northern Ireland's largest council.

The council said it had assets worth £85.7m which meant the loans represented 25% of the value of its assets and this was a "healthy ratio".

A council spokesperson said this was the standard way local authorities raised finances for capital expenditure.

The council said the money was from government loans borrowed at fixed interest rates for capital projects.

Newtownabbey Borough Council had debts of £28m.

The Borough's Mayor, Victor Robinson, said they had a "healthy balance sheet" and that it reflected the quality of the assets for residents.

"We consult with our residents every year and the feedback shows high levels of customer satisfaction with our services and facilities and the value for money aspect of these," he said.

Ballymena had debts of more than £30m, topping the league.