Liverpool City Council has completed a debt refinancing deal in a move that will save £15.8m.
The council has replaced its previous LOBO arrangement with a new funding package from the Public Works Loan Board.
Its previous loan had an interest rate of 4.4% over 44 years, while the new package has an average rate of 1.73% over 18 years.
Cllr Jane Corbett, deputy mayor and cabinet member for finance and resources, said: 'It is a bit like renegotiating your mortgage deal with a different lender to get a cheaper interest rate.
'What it means is we can use the savings to support frontline services. That is more important than ever at this time as we seek to protect the most vulnerable in our city.'
A portfolio of shorter-term loans have been taken out to cover the premium costs of terminating the previous deal.
