The city of Detroit will borrow $120 million from Barclays as part of a deal reached last Thursday. While the deal is pending approval by US Bankruptcy Judge Steven Rhodes, Detroit has already paid some $2 million to Barclays as a “transaction fee,” with another $1 million to follow.
As collateral for the loan, Detroit will offer up unnamed city assets and income tax revenue. According to the Detroit Free Press, “the city is pledging its income tax revenue and the proceeds of future asset sales, except for Detroit Institute of Arts property.” While reports have not specified which city assets will be put up as collateral, numerous assets are either in the process of being privatized or otherwise eyed for “monetization,” including the Detroit Water and Sewerage Department (DWSD), as well as the city’s public lighting, public transportation, and trash collection infrastructure …. http://www.wsws.org