The trust has 5,000 staff over two main sites in Shropshire

They will clear a long-term debt of �31.4m owed by the Shrewsbury and Telford Hospital NHS Trust, plus a further �2.8m deficit for this year.

Chief executive Tom Taylor said the money has been borrowed at 4.5% from NHS trusts which have surpluses.

A review of services is underway with an announcement on 10 July starting off a consultation about potential cuts.

The Royal Shrewsbury and Princess Royal, Telford, hospitals combined their trusts in 2003 and a new board was set up in August last year.

Targets hit

Debts are supposed to be repaid within five years but the trust is asking for a further extension from the implied 2008 deadline.

The plan is to start repayments in the 2006-07 financial year with all money repaid by 2012.

Mr Taylor told BBC News that overspends in the first half of last year totalled �8.2m and it hit two out of six patient targets.

But the second half of the year saw all targets hit and the deficit trimmed to �3.9m.

Primary care trusts have contributed their surplus money to the NHS bank which then loans money to struggling trusts.