VEC took 9% loan for budget gap

Fresh details have emerged of the costs of unapproved lending County Cork VEC arranged to fund a budget shortfall at a childcare centre.

Documents show a long-term facility was set up in 2008 at an effective interest rate of 9%. This was to bridge an anticipated gap of €200,000 in the construction of the €1m facility.

The €200,000 was to be repaid to Mallow Credit Union, which is represented on the board of Mallow Youthreach due to its close association with the project.