Tynwald members will be given an update on the re-financing of the Steam Packet this month.

Treasury Minister Alfred Cannan will present members with the update and potential options ahead of the full report being delivered in October.

When the government bought the Steam Packet in May last year, to operate as an arm’s-length company, it provided a loan of just under £76m to finance the company’s debts.

In his interim report, Mr Cannan revealed this figure finally settled at £500,000 less after a triennial actuarial pension valuation, meaning the taxpayer provided a £75.3m loan, rather than £75.8m.

The report shows the Treasury and Steam Packet board have explored seven options. It also notes the chosen option must accommodate the cost of new vessels.

Mr Cannan said: ’The two transactions, the financing of the £75m and vessel finance, are not mutually exclusive.’

The seven options so far are:

â?¢ The government loan remains in the company.

â?¢ The government loan or a proportion of it is converted to equity. Steam Packet to use the savings of up to £2m to provide special offers to benefit Isle of Man residents and the tourist sector by targeted offers during off-peak season.

â?¢ Refinance the loan through bank borrowings.

â?¢ Refinance the loan through a retail bond.

â?¢ Refinance the loan through a public bond.

â?¢ Refinance the loan through a private placement.

â?¢ Refinance a proportion of the loan, leaving a proportion of government lending in place. While the company is profitable, it will require borrowing to provide new vessels, the first of which is due in 2022, as set out in the Sea Services Agreement which Tynwald members supported earlier this year.

The report looks at the advantages and disadvantages of each option and does not at this stage provide any recommendations or suggest which the Treasury prefers.

However the Steam Packet’s board has made clear it would rather see the debt converted into capital and that ’if there has to be external debt then a private placement is the preferred option’.