Thank you, Mr. Speaker. I have two statements today. Mr. Speaker, later today I will table the Northwest Territories Business Credit Corporation's 1997 Annual Report. The Business Credit Corporation (BCC) is dedicated to assisting economic development in the Northwest Territories and encouraging job opportunities by providing loans and contract security to northern entrepreneurs and businesses. As a provider of loans, the BCC recognizes the diverse needs of its northern clients and tailors financing as much as possible to meet their needs and expectations. The bulk of monies lent to northern businesses remains in the north, creating economic spin offs at the community level.
Mr. Speaker, I would like to mention some of the highlights during the year. Operationally, the BCC's approved loans grew by $9 million, which went to 99 northern businesses. This is an increase of 17 percent in the number of loans approved and 14 percent in dollar terms over the previous year. At the same time, administrative expenses decreased by $47,000 or six percent. Mr. Speaker, the BCC is not only continuing to meet its mandate effectively, but is operating within the fiscal commitments we have promised to the people of the Northwest Territories.
The number of approved loans to level one and level three communities increased from the previous year. In the level one communities, the number of loans to the smaller communities of Fort Smith and Hay River experienced an increase, while Yellowknife experienced a decrease of 40 percent. This indicates commercial banks are handling more of the needs of Yellowknife businesses, freeing up scarce BCC financial resources for smaller communities. While the number of approved loans to level two communities decreased, the amount of the loans increased.
Mr. Speaker, I would also like to announce that the BCC has decided to initiate a one time general interest rollback on BCC loans to the rate prevailing on April 1, 1998.
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This move is in response to the recent economic decline experienced in the Northwest Territories. In keeping with the BCC's mandate, a general rollback of interest rates will assist businesses in maintaining their operations and create an immediate stimulus for the northern economy. In conclusion, Mr. Speaker, I wish to thank the members of the board of directors for their guidance, support and commitment throughout the year, and look forward to their continued help and dedication. Thank you.