Feds approve increase to N.W.T. government's borrowing limit
On Monday, the territory's finance department announced in a news release that its borrowing limit is increasing to $3.1 billion from $1.8 billion.
Limit increasing from $1.8B to $3.1B
The federal government has approved an increase to the N.W.T.'s borrowing limit.
On Monday, the territory's finance department announced in a news release that its borrowing limit is increasing to $3.1 billion.
It used to be $1.8 billion. In October, the N.W.T. government petitioned the federal government to increase it as territorial debt was expected to reach $1.74 billion.
The borrowing limit is a cap set by the federal government.
Monday's news release said the increased limit will give the N.W.T. government flexibility to deal with "expenditure shocks" like floods and wildfires, and respond to the effects of possible U.S. tariffs.
It said servicing payments on the territory's current debt amounts to less than five per cent of revenue.