March 22, 1999
(Municipal and Provincial Affairs)

Debt Relief Program to continue for municipalities

Lloyd Matthews, Minister of Municipal and Provincial Affairs, announced today that the province will continue its support for the Debt Relief Program. He said that a further $5 million will be available in 1998/99 for a total of $17 million provided for the program to date.

The Debt Relief Program was introduced in 1997/98 to assist municipalities regain financial stability. To date, the department has worked with more than 100 municipalities to develop sound financial plans and assisted them in restructuring their long-term debt.

Minister Matthews said: "The continuation of this program is good news for municipalities in the province that need assistance to address the challenges imposed by their debt situations. The additional funding provided this year will allow us to extend the program to the approximately 70 municipalities still experiencing financial difficulty."

In addition to the Debt Relief Program, Minister Matthews said the department will continue to assist and support municipalities seeking to refinance their long-term debt. He said: "Since the program began, more than 80 municipalities have taken advantage of lower rates at banks and other financial institutions and refinanced in excess of $100 million of long-term debt. This debt refinancing demonstrates good, sound financial management on the part of our municipalities.

It also has resulted in thousands of dollars in savings which communities are able to reinvest in local infrastructure and operations."

The Debt Relief/Refinancing programs are designed to help improve the financial positions of municipal governments. Mr. Matthews concluded: "We are working closely with municipalities to address their individual circumstances and further improve development and delivery of these worthwhile initiatives."

Media contact: John Doody, Communications, (709) 729-1983.

1999 03 22