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The Dunedin City Council in New Zealand is depending on guaranteed access to a $200 million New Zealand ($165.2 million) loan in event of a natural catastrophe, a move that has led to concerns among some councilors, the Otago Daily Times reported.
Those concerned said depending mainly on a guaranteed loan may represent a financial risk.
The council was unable to secure cover for $2.4 billion New Zealand ($1.98 billion) of infrastructure assets in 2011 due to disagreements with international reinsurers.