Roll-over loans with swaps now allowed in healthcare sector
It’s finally happened. After prolonged lobbying by healthcare institutions and banks, the Dutch Healthcare Authority (NZa) will amend its policy on standards for long-term interest rates.
This means a significant difference on the interest paid on long-term loans. The combination of a loan with variable interest (roll-over loan) and an Interest Rate Swap (IRS), is now equivalent to a long-term loan. So the long-term interest on the IRS will be subsequently calculated instead of the lower short-term interest rate on the roll-over loan.
With almost 3% separating short-term interest (approximately 0.9%) and long-term interest (3.75%), this is a measure with substantial consequences.