The aim of our Loan Repayment Reserve for Interest Only Debt (Major Policy) 2015 (PDF, 3.3 MB) is to ensure that a cash backed loan repayment reserve is established for the purposes of repaying the principal on ‘interest only’ loans at the date of maturity.
The objectives of the policy are to:
- create a loan repayment schedule
- establish a loan repayment reserve and associated cash investment in respect to interest only debt
- allocate a set amount of funds from the budget each year to the reserve
- have sufficient funds in the reserve at the initial maturity date to repay the outstanding principal in line with the loan repayment schedule.