Bedford Borough Council said a multi-million pound loan is to “re-profile” short-term debt.
Data from the UK Debt Management Office (DMO) revealed that the borough council took out a £5 million loan from the Public Works Loan Board (PWLB) on 16 April.
A council spokesperson said: “In April, the decision was taken to re-profile £5 million of short-term debt over five years in order to assist in managing interest rate risk.
“The council will continue to keep all borrowing under review as part of its Treasury Management practices.
“Levels of borrowing are reported annually within the Statement of Accounts, and periodically to the Executive and Full Council.”
They added that the council holds both short and long-term borrowing.
The PWLB is a UK government facility that provides loans to public bodies, particularly local authorities, for capital projects.
It was formerly a statutory body with commissioners but is now administered by the UK Debt Management Office (DMO) on behalf of HM Treasury.
By John Guinn
Local Democracy Reporter
