YELLOWKNIFE (February 9, 2012) -- Minister of Finance J. Michael Miltenberger introduced An Act to Amend the Borrowing Authorization Act. When passed, the Act will increase the amount the Government of the Northwest Territories (GNWT) is allowed to borrow under the Borrowing Authorization Act from $175 million to $275 million.

The GNWT has two borrowing limits. The first, set under the territorial Borrowing Authorization Act, limits the amount the GNWT can borrow over the short term and was set by the GNWT itself. This is the limit that will change after the passage of the Act to Amend the Borrowing Authorization Act. The second, imposed by the Government of Canada under the Northwest Territories Act, sets an overall limit that includes the short-term borrowing under the territorial Borrowing Authorization Act. This federally imposed limit is currently $575 million.

The current limit under the Borrowing Authorization Act has not been changed since 1995. During this period, government revenues and operations have grown, and the limit no longer provides the flexibility that is needed to manage the GNWT’s day-to-day cash requirements. Increasing the limit will mean the Government will be better able to manage its cash.

“Our strategy of supporting the NWT economy during the fiscal crisis has left our cash reserves low,” said Minister Miltenberger. “While the increase will allow the GNWT to carry more short-term debt, our current fiscal strategy will see us recovering our cash over the next few years. With increased cash reserves, the need to incur short-term debt to manage cash flow will be reduced.”

The increase in the short-term borrowing limit will not affect the GNWT’s credit rating or discussions with Canada to increase the long-term borrowing limit.


For more information, please contact:

Megan Holsapple
Media Liaison
Office of the Premier and Executive Council
Government of the Northwest Territories
Tel: (867) 669-2302
Fax: (867) 873-0111