$6 million gone on interest swaps, says Deirdre Kent

A hard-hitting letter from Deirdre Kent, of Otaki, is our Letter of the Week…and we’ll refer it to the KCDC Chief Executive for his comment. Deirdre writes:
‘The Council has announced it has lost us an unrecoverable $5.9 million on interest rate swaps for the year and the Chief Executive in his message to the ratepayers (Kapiti Observer P13 of Monday Nov 5) says they will keep investing in interest rate swaps.
‘Well, councils and some states in USA have paid the price for dabbling in the modern derivatives market. Well, you say it is the thing to do – invest in ‘financial instruments’. But after LIBOR derivatives certainly aren’t the prudent investments they used to be to protect ourselves against financial turmoil. …READ MORE