Question reference: S6W-16026
- Asked by: Liam Kerr, MSP for North East Scotland, Scottish Conservative and Unionist Party
- Date lodged: 21 March 2023
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Current status: Answered by Neil Gray on 3 April 2023
Question
To ask the Scottish Government whether it will provide further clarification regarding the £25,000 working capital loan that has been made available to Ferguson Marine, including what the loan (a) is expected to be used for, (b) interest rate is and (c) repayment date is; what assurances it has received regarding the repayment of the loan, and whether the loan funding support was a requirement from BAE systems.
Answer
The working capital loan made available to Ferguson Marine is expected to be used to ensure that Ferguson Marine has the necessary cashflow to make payments in relation to salaries and VAT as required while they await repayment from BAE Systems for services rendered in line with the terms of the contract.
Scottish Government has followed Scottish Public Finance Manual procedure with regards to the interest rate and is satisfied that the loan will be repaid, should the facility be drawn upon. The loan follows standard practice for working capital requests from a public body.
The rate of interest and repayment date are not disclosed due to commercial sensitivity.