Government of Canada announces increase to Yukon’s borrowing limit
News release
June 12, 2020 - Ottawa, Ontario - Department of Finance Canada
The Government of Canada is committed to maintaining open and collaborative relationships with every province and territory, with the goal of working together to serve and improve the lives of all Canadians.
Today, Finance Minister Bill Morneau announced that the Government of Canada intends to increase Yukon’s borrowing limit, as part of its ongoing collaboration with, and support to territorial governments.
At the request of the Government of Yukon, the federal government undertook a review of the territory’s borrowing limit. It took into consideration the Government of Yukon’s improved capacity to carry debt and changes in its economic and fiscal outlook since the last review in 2012. Following that review, the Government is now proposing that the borrowing limit be increased from the current level of $400 million to $800 million, upon Governor in Council approval.
This additional borrowing room will provide the Government of Yukon with greater fiscal flexibility to promote economic development and to advance related priorities in Yukon, including through strategic infrastructure investments.
Quotes
“By increasing the Government of Yukon’s borrowing limit we are ensuring it has options to access financing and the ability to carry out the strategic investments needed to meet the needs of its people in the near future.
- Bill Morneau, Minister of Finance
“To enhance green energy production and reduce our reliance on fossil fuels, Yukon needs to make large infrastructure investments. Increasing our ability to access funding and financing is key to moving forward on these initiatives and opens the door to other infrastructure projects that may be necessary in the coming years.”
- Sandy Silver, Premier Government of Yukon
“This increased access to funding is an important step towards a stronger future for the Yukon. These federal actions give our territory the room we need to grow our economy and invest in a cleaner, better future.”
- Larry Bagnell, Member of Parliament for Yukon
Quick facts
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Under the Yukon Act, the Government of Yukon may borrow up to a limit set by the Governor in Council on the recommendation of the Minister of Finance. This borrowing limit is inclusive of debts incurred by both the territorial government and the territorial Crown corporations.
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The territorial government can borrow for territorial, municipal or local purposes up to the established limit without federal approval.
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Reviews of the territorial borrowing limit can take place at any time, and are generally done upon request from a territorial government.
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The current limit for the Yukon was set at $400 million on March 8, 2012, through Order in Council P.C. 2012-0280.
Associated links
Contacts
Media may contact:
Maéva Proteau
Press Secretary
Office of the Minister of Finance
maeva.proteau@canada.ca
613-369-5696
Media Relations
Department of Finance Canada
fin.media-media.fin@canada.ca
613-369-4000
General enquiries
Phone: 613-369-3710
Facsimile: 613-369-4065
TTY: 613-369-3230
E-mail: fin.financepublic-financepublique.fin@canada.ca
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