Quote:
Originally Posted by nik-
Come on MMF. Bank loans don't come from the tax base. A city loan would, regardless if over the next 20 years we get it back, it's a lump sum of taxbase money up front. You can support the city lending the money, but lets not pretend there's no difference.
|
The city would be borrowing the money. They don't have $250 million sitting in the bank to lend out to private businesses, and that isn't the plan. Strictly speaking, it's a lump sum of bank depositors' money. It is in no way a lump sum of taxbase money.
The only salient reason to structure it in this particular way is that the City of Calgary has a lower cost of borrowing than CSEC.