Local governments tend to take out private loans to meet their financing requirements, and one of our specialisations is providing capital to all local governments and acting as a broker in the investment of surplus cash funds.
The lenders regard long-term private loans to local governments as a relatively safe investment, which enables investors to recognise the loans in their balance sheets solvency-free. The advantage for the local governments receiving the funds is that they can attract loans at more favourable rates through these investors.
In addition to drawing capital, local governments are also often in possession of funds which cannot yet be released for public expenditure. Under the Dutch Local Authorities (Financial Transactions) Act, local governments must maintain their surplus cash resources in the treasury (known as “treasury banking”). In addition, they are also authorised to lend to other local authorities, thereby creating opportunities for increasing returns.
If you have any questions about local governments in the Netherlands,
please contact Peter van Klaveren or Wouter Vrolijk by email
or by telephone at the following number: +31 20 504 04 10