Government of Yukon receives increased borrowing limit

The Government of Canada has approved an increase to the Government of Yukon’s borrowing limit from $1.2 billion to $3 billion.

The increased limit gives the Yukon more flexibility to respond to future needs, including major priorities like critical energy and health care infrastructure. The new limit is a maximum borrowing authority, not a commitment to borrow or spend additional funds.

Upon learning of the territory’s challenging fiscal situation, the Yukon government worked collaboratively with the Government of Canada, reflecting the positive relationship between the two governments.

The Government of Yukon will continue to manage its existing borrowing sustainably while maintaining a disciplined approach that reflects the territory’s fiscal reality. Decisions about borrowing will continue to consider affordability, fiscal sustainability, available liquidity and the long-term value of proposed investments.

The government’s new debt management policy will also help guide potential borrowing decisions through a clear and transparent framework for planning, authorizing, managing and reporting on debt. Annual debt management plans will be included with the government’s annual Fiscal Outlook to set out planned borrowing activity and support public reporting on the government’s debt position.