Guernsey States agrees to £250m borrowing bond

Issuing a government bond will allow Guernsey's States departments to borrow money for the first time.

Currently States-owned entities can borrow funds but political departments are not allowed.

The major change in the island's financial planning was approved after it dominated debate around the island's 2015 budget.

Treasury Minister Gavin St Pier had proposed the bond to take "advantage of record low interest rates".

He said the move was not about raising money but making sure the States' assets worked even better.

The budget, which included rises in duty on tobacco, alcohol, property tax and fuel, was approved after some small changes, including increasing controls on how money from the bond would be released and an increase in the maintenance budget of the Education Department.