Quote:
Originally Posted by heero_yuy
According to R4 this morning El Gov will borrow some at very low interest rates in order to lever money from pension funds. At the moment these funds are finding good returns on their normal investments hard to find and are increasingly turning to infrastructure projects where returns are better than the stock markets or bonds.
Let's hope this isn't another PFI scheme that will cost us dear in the next decade or two.
This borrowing does not add to the structural deficit that has to be reduced by cuts or more taxes.
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PFI is where the companies that do the construction etc do the borrowing and pass on the "costs". This is direct borrowing by government.