Wed Nov 13, 2002 12:45 am
I think what this post is trying to highlight is the UK Government "acting the bank" (as all Governments do) and obtaining a large amount of interest from the deal.
To be fair though the interest rate was probably in the order of 5% per annum, which over 14 years would up the repayment due on the £250,000 loan to about £425,000. The other £75,000 (let's say) would be in Royalties, and there's your £500,000.