As a result of a change in Government Policy in 1996 Municipalities were given authority to refinance their Newfoundland Municipal Financing Corporation municipal debt through private financial institutions to avail of better interest rates. This process entails the analysis of the present portfolio of a municipality taking into account their total debt, the subsidy provided by the province and determining what portion of the balance of the principal debt belongs to the municipality. Approvals to borrow are issued to the Council which will include any arrears and penalties charged by the NMFC. The Province then assumes 100% responsibility for the principal remaining.
Contact the Municipal Finance Division