The Manx government will be required to guarantee the Isle of Man Steam Packet’s loans when it builds its new ferries.

Under the terms of the sea services agreement, the company must provide two new ships, with the first due to be in service in 2022.

In a Treasury report, due to be presented to Tynwald (Manx Parliament) on the refinancing of the £76m the company owes the taxpayer, it is also revealed that a government guarantee on the loans for new boats will be required.

The section of the report titled ’Additional Company Debt’ details the necessity for new ships and that ’it will require borrowing’.

For more the IOMToday reports here.