INVERCLYDE Council has had to borrow over £7m from other local authorities to ease a cash flow crisis, the Tele can reveal.

Details of the loans have been disclosed by finance chiefs in a report prepared for councillors.

Officials warn this kind of pressure could become a regular feature as their reserves are eaten up by the harsh economic climate facing them.

The report says: "During February the council undertook a total of £7.5million short-term borrowing from three Scottish councils due to projected short-term reductions in cashflow.

"These transactions, in addition to ensuring payments from the Scottish Government and NHS were received timeously, addressed the issue but cashflow management will become an increasingly important task as the council’s reserves reduce and the impact of the increased use of non-cash backed reserves is felt."

Officials say cash flow will be closely monitored and reported via regular Treasury Management reports to the policy and resources committee.