The Local Government Association (LGA) has defended its support of the struggling UK Municipal Bonds Agency.
Criticism has been growing amid warnings – previously reported in The MJ – that the four-year-old agency could run out of money before issuing a bond.
One well-placed source said: ‘The LGA hasn’t really pushed it hard enough. It isn’t grabbing the bull by the horns.
But a LGA spokesman insisted: ‘As one of a number of investors, we have been supporting the bond agency throughout and are keen to see it succeed.’
Smith Square has vowed to ‘stand behind’ the agency by offering ‘ongoing financial and operational support’ until 2028 but is not believed to have put aside any cash for a bailout on top of the £500,000 of capital it contributed to get the company founded.
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