News Release Archive
FINANCE--Nova Scotia Borrows Long Term at Low Rate
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Nova Scotia is reaping more benefits from low interest rates and
good financial management.
The Department of Finance last week issued a $300-million 30-year
bond in Canadian funds. The coupon interest rate was 6.6 per
cent. "This is the lowest rate we have paid on long-term Canadian
dollar bonds since the 1960s," said Finance Minister Bill Gillis.
The $300 million will be used to pay off financial obligations as
they come due. It is the first long-term fixed-rate borrowing by
the province since 1992.
"Like many homeowners for the past while, the province has been
borrowing money at short-term, or floating, rates,' said Dr.
Gillis. "But given the current state of long-term interest rates,
we decided it was time to lock in part of the mortgage.
"It should also be understood that the low rates in Canada are a
direct result of governments' getting their financial houses in
order. All the provincial governments and the federal government
have either achieved balanced budgets or have such a result as a
near-term goal. This prudent attitude has made lenders more
willing to offer their money at low rates, and we are pleased to
see the benefits for Nova Scotia taxpayers."
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Contact: Bruce Cameron
Department of Finance
902-424-8787
E-mail: cameronb@gov.ns.ca
ngr October 2, 1997 9:30 am
