Cost to IOM of loss of AAA rating

"THE Isle of Man’s loss of its prized triple-A credit rating could cost taxpayers half a million pounds – and leave ratepayers paying tens of thousands of pounds more.

When US ratings agency Standard and Poor’s downgraded the island from AAA to AA+ in November, Chief Minister Allan Bell MHK said he doubted the move would have a direct impact on the economy in any way.

But now it has emerged that the downgrade has had a significant impact on the interest charged on local authority borrowing.

Isle of Man Bank, which won the contract to provide the government-guaranteed lending facility four years ago, has invoked a clause in its agreement with Treasury that entitles it to increase the interest rate it charges on borrowing by 0.25 per cent in the event of a ratings downgrade. ..."

Comment: The same bank that apparently charges to make electronic transfers within the UK/IOM - initially deducted in error from a number of the latest liquidation payments made via the DCS/FSC. The error (by DCS/FSC) was subsequently corrected, but presumably the charges are nevertheless due and paid by the DCS. Maybe time for IOMG and FSC to change their bank?!