Thank you, Mr. Speaker. I will direct my question to the same Minister. I would like to ask him a question pertaining to the Business Loans and Guarantees Fund regarding its interest rate guidelines. Mr. Speaker, the bank rate is now the lowest it has been for the past number of years. It is my understanding that the Business Loans and Guarantees Fund interest rates are fixed on a quarterly basis where the rate is adjusted to two per cent below the prime rate. Is the rate adjusted automatically on a quarterly basis, or is it adjusted only upon application by the client?
Question O15-12(1): Interest Rate Guidelines For Business Loans And Guarantees Fund
In the Legislative Assembly on December 10th, 1991. See this topic in context.
Question O15-12(1): Interest Rate Guidelines For Business Loans And Guarantees Fund
Item 5: Oral Questions
Page 27
Question O15-12(1): Interest Rate Guidelines For Business Loans And Guarantees Fund
Item 5: Oral Questions
December 9th, 1991
Page 27
The Speaker Michael Ballantyne
Minister of Economic Development and Tourism, Mr. Pollard.
Return To Question O15-12(1): Interest Rate Guidelines For Business Loans And Guarantees Fund
Question O15-12(1): Interest Rate Guidelines For Business Loans And Guarantees Fund
Item 5: Oral Questions
Page 27
John Pollard Hay River
Mr. Speaker, the rate is Royal Bank plus two per cent, not less two per cent. We set that every 90 days. This is the rate somebody would get if they applied in a particular 90-day period.
With regard to changing the rates for people who have loans with the Government of the Northwest Territories, they have to apply to have their loans rewritten. When they do that, Mr. Speaker, they have to be a client in good standing. Also, they have to be prepared to pay the legal costs of registering any future securities. Thank you, Mr. Speaker.
Return To Question O15-12(1): Interest Rate Guidelines For Business Loans And Guarantees Fund
Question O15-12(1): Interest Rate Guidelines For Business Loans And Guarantees Fund
Item 5: Oral Questions
Page 27
The Speaker Michael Ballantyne
Mr. Zoe, supplementary.
Supplementary To Question O15-12(1): Interest Rate Guidelines For Business Loans And Guarantees Fund
Question O15-12(1): Interest Rate Guidelines For Business Loans And Guarantees Fund
Item 5: Oral Questions
Page 27
Henry Zoe North Slave
Mr. Speaker, my understanding is that it is not automatically adjusted on a quarterly basis. Is this what the Minister indicated?
Supplementary To Question O15-12(1): Interest Rate Guidelines For Business Loans And Guarantees Fund
Question O15-12(1): Interest Rate Guidelines For Business Loans And Guarantees Fund
Item 5: Oral Questions
Page 27
The Speaker Michael Ballantyne
Mr. Pollard.
Further Return To Question O15-12(1): Interest Rate Guidelines For Business Loans And Guarantees Fund
Question O15-12(1): Interest Rate Guidelines For Business Loans And Guarantees Fund
Item 5: Oral Questions
Page 27
John Pollard Hay River
Mr. Speaker, we adjust the rate that we loan money at each 90 days; every three months. It is based on Royal Bank plus two per cent, sir. If there is an existing loan that a client has with us at a particular rate that he or she received in a particular 90-day period, and they want to change that rate because, as the Member says, the rate has gone down, then they must apply to the department to reregister that loan. Thank you, Mr. Speaker.
Further Return To Question O15-12(1): Interest Rate Guidelines For Business Loans And Guarantees Fund
Question O15-12(1): Interest Rate Guidelines For Business Loans And Guarantees Fund
Item 5: Oral Questions
Page 27
The Speaker Michael Ballantyne
Oral questions. Supplementary, Mr. Zoe.
Supplementary To Question O15-12(1): Interest Rate Guidelines For Business Loans And Guarantees Fund
Question O15-12(1): Interest Rate Guidelines For Business Loans And Guarantees Fund
Item 5: Oral Questions
Page 27
Henry Zoe North Slave
Mr. Speaker, I am having a difficult time here. Why does the Business Loans and Guarantees Fund not offer the floating rate options like the banks do? Why was this not considered when we put this program in?
Supplementary To Question O15-12(1): Interest Rate Guidelines For Business Loans And Guarantees Fund
Question O15-12(1): Interest Rate Guidelines For Business Loans And Guarantees Fund
Item 5: Oral Questions
Page 27
The Speaker Michael Ballantyne
I am not sure if it is fair to ask the Minister what was considered when the program was first put in. Mr. Pollard, would you like to try to answer the question?
Further Return To Question O15-12(1): Interest Rate Guidelines For Business Loans And Guarantees Fund
Question O15-12(1): Interest Rate Guidelines For Business Loans And Guarantees Fund
Item 5: Oral Questions
Page 27
John Pollard Hay River
Mr. Speaker, under the Northwest Territories Business Credit Corporation Act, regulation 51(i), it can be done by by making interest rates to certain classes of loans or to particular loans. I would think that we may be able to look at a floating interest rate, although some clients prefer to be locked in at a particular rate so they at least know what their payments are going to be. But certainly, if the Member wants us to look at it, we will do so.
Further Return To Question O15-12(1): Interest Rate Guidelines For Business Loans And Guarantees Fund
Question O15-12(1): Interest Rate Guidelines For Business Loans And Guarantees Fund
Item 5: Oral Questions
Page 27
The Speaker Michael Ballantyne
Oral questions. Mr. Koe.