TORFAEN council has borrowed £20 million on a short-term basis to support themselves through the coronavirus pandemic.

The loan was paid in six parts at the end of March and was required to fund grants under the Welsh Government initiative in response to the pandemic. These six instalments covered a period of six days to six months.

The council has said that £10 million was to fund business grants, while the remaining £10 million would help with cash flow at the end of the financial year.


A 20-year market loan of £10 million was also taken out in mid-March, with an interest rate of 1.88 per cent.

A council spokesman said: “As a direct result of the Covid-19 pandemic lockdown imposed on March 24, the council was advised by Welsh Government to secure funds in order to pay grants to support Torfaen businesses through the disruption.

“This funding requirement was estimated at approximately £10 million. The remaining £10 million short-term borrowing was taken to cover other council cash flow commitments at the end of the financial year.

“The requirement to fund the Welsh Government’s Covid-19 initiatives at the end of the financial year created an exceptional situation but the council does not expect to undertake any further short-term borrowing of this particular nature in respect of the Covid situation.”