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Reporting contingent liabilities in relation to a Government guarantee backing a previously approved £4 million borrowing facility and a new partially guaranteed borrowing facility of up to an additional £26 million for Historic Royal Palaces.
02 June 2020
Type
Written Ministerial Statement
Department
Department for Digital, Culture, Media and Sport
At a Glance
Issue Summary
The statement addresses the activation of a government guarantee for Historic Royal Palaces (HRP) and the creation of a new partially guaranteed borrowing facility due to financial impacts from COVID-19.
Action Requested
The government is providing an additional £26 million borrowing facility with an 80% guarantee, activated immediately due to urgent need. The existing £4 million guarantee has been called upon as HRP faces severe cash flow issues from the pandemic.
Key Facts
- Historic Royal Palaces' previously approved £4 million overdraft facility activated due to COVID-19.
- A new borrowing facility of up to £26 million with an 80% government guarantee has been established for HRP.
- The new facility will allow HRP's reserves to mature and invest in the business over a period of two years.
- Due to urgency, £4 million was immediately drawn from the additional £26 million facility on 20 March 2020.
- Historic Royal Palaces is a charity established by Royal Charter managing unoccupied royal palaces since April 1998.
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