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<p>The rates of interest charged on Public Works Loan Board (PWLB) loans are determined
by the UK Debt Management Office (DMO) using a methodology specified by HM Treasury
(HMT) in accordance with section 5 of the National Loans Act 1968.</p><p> </p><p>Under
section 2 of the Public Works Loans Act 1965, loans to local authorities are automatically
secured on all the revenues of the local authority.</p><p> </p><p>The repayment terms
of the loans are dependent on the type of loan and repayment method. This can be a
mix of principal and interest during the life of the loan, or interest only with the
entire principal repaid at the end of the term.</p><p> </p>
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