Part 3: There are general principles which departments can apply to refinancings
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Departments should consider a range of principles when they assess a refinancing
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Appropriate benefits should go to those bearing risks
Appropriate benefits should go to those bearing risks
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The private sector will be entitled to benefits from favourable movements in interest rates where it bears the related risk
Favourable movements in projected future interest rates produced a £2.6 million benefit for FPSL shareholders
Ambiguity in the PFI contract would have allowed the Prison Service to seek a share of these benefits