Moose Jaw -
A little interest rate swap will have the City of Moose Jaw paying a fixed rate for a loan to develop the Westheath subdivision.
During Monday's executive committee meeting, the majority of councillors and the mayor agreed to direct administration to prepare a borrowing bylaw to authorize entering into a five-year International Swap and Derivatives Association Agreement with the Royal Bank of Canada.
Under the agreement, Moose Jaw would receive a $1.622 million loan at an interest rate not to exceed four per cent. The money goes towards developing the Westheath subdivision on South Hill.
An interest rate swap is a payment method where basically the bank arranges for two borrowing parties to switch their interest payment methods. In the case of the loan authorized on Monday, the City of Moose Jaw wanted to pay a fixed rate, while another company on the financial market wanted to pay a floating rate.
For more on this story, read Wednesday's Times-Herald.
