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6th December 2018, 15:07

Credit Finance concerns confirmed by audit of accounts, says GSD

The GSD says audited accounts filed by Credit Finance have confirmed its concerns over the company. It says these prove Credit Finance was used to channel people's money, deposited in the Gibraltar Savings Bank, to support the Government's extravagant capital spending programme.

The GSD's statement comes after Credit Finance Company Limited filed accounts for the five years ended last December. It highlights that the Savings Bank has an investment of £400 million in the company.

Shadow Minister for Public Finance, Roy Clinton, says at the same time as the GSLP-Liberals claimed to be reducing official borrowing, they were causing Government companies to borrow from Credit Finance instead.

Mr Clinton says a review of the company's assets show 97% relate to loans or investment connected with the Government or its projects. He says the GSD has been refused information as to what the £328 million borrowed by Government companies is being used for.

Mr Clinton adds a future GSD government would seek to redeem the Savings Bank's £400 million holding, and ultimately close down Credit Finance, ensuring the Government would have to account publicly for borrowing.