Thursday, September 21, 2023 at 10:32 am

Bordar – BNG Bank canceled a loan with the Multifunctional Foundation Burdaard (MCB) as of December 1, 2023. The Foundation owns MFC It Spektrum in Burdaard.

The financial problems were already known in July this year after the bank placed the institution under “special management”. Then the bank watches closely. The bank has now indicated that the MFI must look for a new financier.

The brink of bankruptcy

With the termination, BNG Bank MFC puts It Spektrum on the brink of bankruptcy. The center has been operating at a loss for a long time, which has led to higher costs. Bankruptcy can only be avoided if a new bank or lender can be found.

“But our assessment is that this will not work.” The municipal executive writes in a letter to the municipal council. “There is a reason why BNG is currently MCB. When MCB was bailed out in 2017/18, no bank was willing to contribute to the restructuring of MCB’s finances. Only BNG was willing to do so in exceptional circumstances. On strict conditions.” . BNG Bank has now indicated that loans to institutions such as MCB Bank no longer fit the “bank path”.

The municipality is looking for a solution

The municipality of Noardeast-Fryslân will be responsible for the remaining debts in the event of bankruptcy. After all, the municipality guarantees the loan (€1,075,250). The municipality will now see if it is possible to obtain the loan. The municipal executive has doubts about issuing such a “blank cheque”.

In the coming weeks, it should become clear whether the municipal council is able to find a solution or a temporary solution. That is why the municipal council has also been informed of this issue.

Democratic process

“Because the Council believes that a good democratic process benefits from openness, the Council wishes to inform you of this surprising and difficult issue. The Council requests time and space to reach a conclusion. To find a good solution,” the letter said. We will inform you again as soon as possible in the event of new developments.”

Click here for the full letter to council.