Government initiatives helping municipalities to maintain financial stability.

May 4, 1998
(Municipal and Provincial Affairs)

The following statement was issued today by Arthur D. Reid, Minister of Municipal and Provincial Affairs. It was also read in the House of Assembly:

I want to provide the House with a status report on government's initiatives to help municipalities in their efforts to maintain financial stability.

Up to this point, 50 of our municipalities, with encouragement from the department, have been able to refinance in excess of $100 million of government-guaranteed debt owing to NMFC.

These municipalities have refinanced this debt through banks or private lending institutions where they were able to achieve lower interest rates. This refinancing has resulted in tens of thousands of dollars in savings to reinvest in their communities. It demonstrates good, sound financial management by municipalities.

In addition, our $12 million Debt Relief Program is enabling us to assist municipalities to regain financial stability. To date, negotiations are ongoing or completed with close to 40 municipalities and another 35 are pending.

I want to commend the municipalities who have participated to date. They have demonstrated positive action in getting their financial houses in order.

This program is contributing significantly to the revitalization of rural Newfoundland and Labrador.

1998 05 04 2:35 p.m.

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