Pasadena : Y’s Request Financial Help
The YMCA and YWCA have turned to the city to help finance the construction of a $15.1-million joint facility that was thrown into jeopardy after a bank decided not to back their loan.
The Y’s had been expecting Lloyd’s Bank PLC to provide an $8-million letter of credit guaranteeing repayment of the loan. But the bank backed out in November, saying it was concerned that the two groups would not have enough cash coming in to repay the loan.
The YMCA and YWCA have asked the city to provide the letter of credit. The guarantee would not cost the city anything, but would lower its credit rating, making it more difficult for the city to borrow money.
The city Board of Directors is expected to decide the issue at its Dec. 12 meeting.
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